
02 June, 2025
News Categories. NewsIn global trade news this week, Trump’s tariff impositions have been called into question by the United States Court of International Trade (USCIT). The institution determined that the emergency law raised by Trump did not give him the authority to impose tariffs on nearly every sovereign nation in the world during “liberation day” on 2nd April 2025.
USCIT Ruling on Trump Tariffs
On 28th May, the U.S. Court of International Trade threatened to stop/delay Trump’s “liberation day” tariff. The three-judge panel deemed that the U.S. Constitution assigns the power to levy taxes and tariffs to the U.S. Congress, rather than the executive branch (the President). Therefore, they believe President Trump exceeded his authority by invoking the International Emergency Economic Powers Act. This development would have resulted in the tariffs being removed, with tariff prices reducing back to their pre-2nd April pricing.
There is a chance this case could go all the way to the Supreme Court, the highest court of the United States, and one of the three powers of government, alongside the President and Congress. But a Trump loss at the hands of the Supreme Court will not necessarily result in the removal of his tariffs.
The initial ruling stated that the President did not have the power to impose new tariffs, with an increase of up to 15%, for 150 days in hopes of not altering the balance of trade. However, new developments as of this week have seen the President double down on his steel and aluminium import tariff, from 25% to 50%.
Even amidst his court hearing, President Trump has found a way to further increase tariffs.
The move has been in an effort to further spite the steel industry in China, but has inadvertently further hindered the already struggling British steel industry. Although the US-UK trade deal aims to drop import taxes on UK steel, the instability and unpredictability of Trump’s tariff changes do not seem to fill British steel with much confidence.
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