Tuesday, 02 January 2024 12:17 GMT

US Seeks to Preserve Trump’s Global Tariffs Amid Ongoing Court Battle


(MENAFN) The US government has asked a federal trade court to suspend a ruling that struck down President Donald Trump’s 10% global tariffs while the administration continues its appeal, according to reports.

The request would allow the tariffs to remain in effect, meaning importers would continue paying the duties as the legal dispute moves through higher courts.

A divided panel of the US Court of International Trade previously ruled 2–1 that the administration’s use of Section 122 of the Trade Act of 1974 to impose the tariffs was not legally valid. The decision applied directly to the companies involved in the lawsuit as well as Washington state, though officials warned that extending the ruling could trigger broader legal challenges from thousands of importers.

Government attorneys argued that blocking enforcement during the appeal would significantly disrupt trade policy and complicate efforts to recover revenue from earlier tariff measures that had already been invalidated by the Supreme Court.

The administration has formally appealed the ruling to the US Court of Appeals for the Federal Circuit and has indicated it may seek emergency intervention from the Supreme Court if lower courts refuse to pause enforcement.

At the center of the case is the interpretation of Section 122, which permits temporary import restrictions under specific balance-of-payments conditions. The court concluded that the administration’s justification relied on broader trade and current account deficits rather than the narrower criteria outlined in the statute.

The disputed tariffs were introduced in February and are currently scheduled to expire in July, pending the outcome of ongoing legal proceedings.

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