Courts scrutinise Trump’s tariffs

Existing tariffs of 25 per cent on vehicles and automotive parts being imported into the United States remain in place despite a legal wrangle over other sweeping levies introduced by President Donald Trump.

A raft of global tariffs introduced by the president were deemed illegal and blocked by the US Court of International Trade on Wednesday.

The move came after a panel of judges ruled Trump had wrongfully invoked an emergency law intended to address threats during national emergencies to impose tariffs on almost every US trading partner.

However, the US administration can continue to collect import taxes for now after a federal appeals court granted a bid from the White House on Thursday to temporarily suspend the lower court’s order.

The legal to-and-fro only relates to reciprocal tariffs. Industry-specific taxes, such as those on steel, aluminium and automotive imports, were imposed under separate authorities on national security grounds and are unaffected by the ruling.

The trade court made its judgement after small businesses and a group of states challenged Trump’s economic measures, reports the BBC.

In its appeal, the Trump administration says: “The political branches, not courts, make foreign policy and chart economic policy.”

Trump ordered a blanket 10 per cent tariff on goods from most countries earlier this year, with higher duties on products from certain trade partners.

He has temporarily suspended many of the tariffs until early July as the administration pursues trade negotiations.

However, apart from a pact with Britain this month, agreements remain elusive and analysts say the court action may dissuade countries like Japan from rushing into deals.