Trump loses the battle of tariffs. What is expected now?

On April 2nd, President Trump introduced an unprecedented global tariff regime, imposing taxes on imports for most US business partners. However, the International Trade Court has ruled that an emergency law mentioned by the White House does not give the president unilateral authority to impose fees on almost every foreign country.

The court has declared that the Constitution of the United States exclusively gives Congress the power to regulate trade with other countries, and that this competence is not replaced by the president's mandate. And after the decision, there was immediate reaction from the Trump administration, which said it would appeal the decision.

According to reports by the American media, there was a three-judge body that ruled that the International Economic Powers Law in Case Emergency (IEEPA), a 1977 law Trump used to justify tariffs, does not give the president the power to impose such widespread taxes on imports. The court also blocked a separate set of tariffs that the Trump administration had imposed on China, Mexico and Canada.

After that decision, global markets have responded positively, with Asian stock exchanges rising on Thursday morning, while US dollar strengthened positions against safe waves like you're Japanese and Swiss francs.

What happens now?

It is known that the White House has 10 days to follow bureaucratic procedures to suspend tariffs, even though most of them have already been temporarily suspended.

The case will continue in appeals courts. If the White House fails to appeal, then Customs and Border Protection Agency (CBP) will issue new instructions to its officials.

But if this court ruling continues to remain in force, businesses that have paid the fees will have the right to receive remuneration with interest.

We remember that after Trump introduced an unexpected global tariff regime by imposing taxes on imports for most of US trade partners, a 10% basic fee was imposed on most countries, while even higher <x0-reciproke tariffs” were imposed on dozens of states and economic blocs, including the EU, United Kingdom, Canada, Mexico and China.

Trump argued that this broad economic policy would strengthen domestic American production and protect jobs. While, since the announcement, global markets have experienced a wave of shocks, which deepened even more after the withdrawals and temporary tariff suspensions on Trump's part, while foreign governments began negotiations with Washington.

The situation deteriorated further due to a prolonged trade struggle with China, as the world's two largest economies exchanged several rounds of bilateral tariffs, peaking with a 145% US tax on Chinese imports and a 125% China tariff on American goods.

Since then, the two countries agreed to an economic ceasefire: US tariffs on China have dropped to 30%, while China has reduced tariffs on some imports from the US to 10%.

Meanwhile, both the US and United Kingdom announced agreements on lowering tariffs between them.

Trump had threatened that by June he would set a 50% fee for all goods coming from the EU, expressing disappointment at the pace of trade talks with the bloc. But later, he agreed to extend the deadline for more than a month, as European Commission President Ursula von der Leyeen asked for more time for negotiations./Periscopi/