According to the United States Court of Appeals (USA) for the Federal Circuit, federal judges need more time to weigh the documents presented by both parties of the decision of the US International Trade Court. UU. (USCIT) to suspend the wide tariffs of President Donald Trump.
Decision to cancel illegal tariffs suspended waiting for review of the Federal Circuit
The US Appeals Circuit has intervened after the USCIT decision that the Trump administration has misused the Law of International Emergency Emergency Powers (IEEPA) to impose global tariffs that exceed the limits of the law. According to the USCIT, IEEPA is aimed at allowing the White House to quickly impose temporary restrictions and commercial barriers during a national security crisis, and should not be used to impose unilateral policies in order to avoid Congress.
The Trump administration was quick to present an appeal after the USCIT decision on Wednesday, and the federal appeal circuit is allowing Trump’s “Trump world retaliatory tariff orders” to remain in force while federal judges review both parties of the decision.
The USCIT failed against the Trump administration after five companies and twelve states sued the White House to suspend the wide application of emergency powers of President Trump. According to the USCIT decision, the Trump 30% tariff on China, 25% on USCMC exempt from Canada and Mexico, and the import tax of 10% of the Trump administration should be reduced within ten days after the decision.
Investors were already preparing for a long wait for a final decision on the matter; It was widely expected that the Trump administration appealed the decision and immediately began to seek alternative legal routes to impose its commercial policies of imposing first taxes, ask questions later ‘.
Market reaction
The markets remain in general warm before the news; The US dollar index.
FAQS tariffs
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
