This article is from the source 'bbc' and was first published or seen on . The next check for changes will be

You can find the current article at its original source at https://www.bbc.com/news/articles/c8xgdj9kyero

The article has changed 15 times. There is an RSS feed of changes available.

Version 11 Version 12
US trade court blocks Trump's sweeping tariffs in blow to trade policies US trade court blocks Trump's sweeping tariffs in blow to trade policies
(about 4 hours later)
Watch: Trump slams "Taco" acronym given to tariff flip-flopsWatch: Trump slams "Taco" acronym given to tariff flip-flops
A US federal court has blocked President Donald Trump's sweeping global trade tariffs, in a major blow to a key component of his economic policies.A US federal court has blocked President Donald Trump's sweeping global trade tariffs, in a major blow to a key component of his economic policies.
The Court of International Trade ruled that an emergency law invoked by the White House did not give the president unilateral authority to impose tariffs on nearly every one of the world's countries.The Court of International Trade ruled that an emergency law invoked by the White House did not give the president unilateral authority to impose tariffs on nearly every one of the world's countries.
The New York-based court said the US Constitution gave Congress exclusive powers to regulate commerce with other nations, and that this was not superseded by the president's remit to safeguard the economy.The New York-based court said the US Constitution gave Congress exclusive powers to regulate commerce with other nations, and that this was not superseded by the president's remit to safeguard the economy.
The Trump administration said it would appeal within minutes of the ruling. The White House has asked the court to block the order suspending tariffs while it appeals the case.
Follow live updates after the court rulingFollow live updates after the court ruling
Who brought the court case?Who brought the court case?
The ruling was based on two separate cases. The nonpartisan Liberty Justice Center brought one case on behalf of several small businesses that import goods from countries that were targeted by the duties, while a coalition of US state governments also challenged the import taxes.The ruling was based on two separate cases. The nonpartisan Liberty Justice Center brought one case on behalf of several small businesses that import goods from countries that were targeted by the duties, while a coalition of US state governments also challenged the import taxes.
The two cases mark the first major legal challenges to Trump's so-called "Liberation Day" tariffs. The two cases marked the first major legal challenges to Trump's so-called "Liberation Day" tariffs and went to the Court of International Trade, a part of the federal court system with specific authority over trade.
A three-judge panel ruled that the International Emergency Economic Powers Act (IEEPA), a 1977 law that Trump cited to justify the tariffs, did not give him the power to impose the sweeping import taxes.A three-judge panel ruled that the International Emergency Economic Powers Act (IEEPA), a 1977 law that Trump cited to justify the tariffs, did not give him the power to impose the sweeping import taxes.
The court also blocked a separate set of levies the Trump administration imposed on China, Mexico and Canada, in response to what the administration said was the unacceptable flow of drugs and illegal immigrants into the US.The court also blocked a separate set of levies the Trump administration imposed on China, Mexico and Canada, in response to what the administration said was the unacceptable flow of drugs and illegal immigrants into the US.
However, the court was not asked to address tariffs imposed on some specific goods like cars, steel and aluminium, which fall under a different law.However, the court was not asked to address tariffs imposed on some specific goods like cars, steel and aluminium, which fall under a different law.
What has the reaction been so far?What has the reaction been so far?
The White House has criticised the ruling, though Trump has not yet commented directly.The White House has criticised the ruling, though Trump has not yet commented directly.
"It is not for unelected judges to decide how to properly address a national emergency," White House deputy press secretary Kush Desai said in a statement."It is not for unelected judges to decide how to properly address a national emergency," White House deputy press secretary Kush Desai said in a statement.
But Letitia James, the attorney general of New York, one of 12 states involved in the lawsuit, welcomed the decision.But Letitia James, the attorney general of New York, one of 12 states involved in the lawsuit, welcomed the decision.
"The law is clear: no president has the power to single-handedly raise taxes whenever they like," she said."The law is clear: no president has the power to single-handedly raise taxes whenever they like," she said.
Stock markets in Asia rose on Thursday morning following the ruling, US stock futures also jumped and the US dollar made gains against safe-haven peers, including the Japanese yen and Swiss franc. European markets opened flat. Stock markets in Asia and US rose in early trading on Thursday following the ruling while European markets opened flat.
What tariffs has Trump announced, and why?What tariffs has Trump announced, and why?
Trump agrees to extend EU trade talks after 50% tariff threatTrump agrees to extend EU trade talks after 50% tariff threat
What happens now?What happens now?
The White House has 10 days to complete the bureaucratic process of halting the tariffs, although most are currently suspended anyway. For now, the court has given the White House has 10 days to complete the bureaucratic process of halting the tariffs, although some are currently suspended anyway.
The case needs to go through the appeals process. If the White House is unsuccessful in its appeal, the US Customs and Border Protection Agency (CBP) will then issue directions to its officers, John Leonard, a former top official at the CBP, told the BBC. Meanwhile, the White House has asked the court to block the order while it appeals it.
That said, a higher court might be more Trump-friendly. The case could eventually go to the Supreme Court - the highest court in the US - but even if Trump lost there it would not necessarily spell the end of his tariff plans.
But if all courts do uphold the ruling, businesses which have had to pay tariffs will receive refunds on the amounts paid, with interest. These include the so-called reciprocal tariffs, which were lowered to 10% across the board for most countries and were raised to 145% on Chinese products, now 30%. For one thing, the ruling noted that the president does have the power to impose tariffs of up to 15% for 150 days to address concerns about the balance of trade, which the White House had argued were an emergency.
Mr Leonard said there would not be any changes at the border for now and that tariffs would still have to be paid. If the administration chose to go that route, those new tariffs could go into effect within days, according to analysts at Goldman Sachs.
Market reactions showed, partly, investors "exhaling after weeks of white-knuckle volatility sparked by trade war brinkmanship", Stephen Innes at SPI Asset Management wrote in a commentary. Trump could also turn to the other, more established laws that he used in his first term to justify tariffs, which focus on issues such as national security and unfair trade policies. Those require investigations and periods of public comment before tariffs go into effect.
Mr Innes said US judges gave a clear message: "The Oval Office isn't a trading desk, and the Constitution isn't a blank cheque." Goldman Sachs said Trump might also turn to an untested part of a 1930 trade law that allows the President to impose tariffs of up to 50% on imports from countries that "discriminate" against the US.
"Executive overreach may finally have found its ceiling. And with it, a fresh dose of macro stability – at least until the next headline."
Paul Ashworth, from Capital Economics, said the ruling "will obviously throw into disarray the Trump administration's push to quickly seal trade 'deals' during the 90-day pause from tariffs".
He predicted other countries "will wait and see" what happens next.
How did we get here?How did we get here?
On 2 April, Trump unveiled an unprecedented global tariff regime by imposing import taxes on most of the US's trading partners.On 2 April, Trump unveiled an unprecedented global tariff regime by imposing import taxes on most of the US's trading partners.
A 10% baseline tariff was placed on most countries, along with steeper reciprocal tariffs handed down to dozens of nations and blocs, including the EU, UK, Canada, Mexico and China. A 10% baseline tariff was placed on most countries, along with steeper reciprocal tariffs handed down to dozens of nations and blocs, including allies such as the EU, UK, Canada, Mexico and China.
Trump argued that the sweeping economic policy would boost American manufacturing and protect jobs. Trump argued that the sweeping economic policy would boost American manufacturing and protect jobs, while kick-starting negotiations over trade policies it views as unfair.
Global markets have been thrown into disarray since the announcement and later after Trump's reversals and pausing of tariffs as foreign governments came to the negotiating table. Global markets have been thrown into disarray since the announcement, but Trump has since backed down on some tariffs and reduced or delayed others.
Adding to the turmoil was a prolonged trade war with China, as the world's two economic superpowers engaged in a back-and-forth raising of tariffs, which reached a peak with a 145% US tax on Chinese imports, and a 125% Chinese tax on US imports. What does this mean for businesses and governments facing the tariffs?
The world's two biggest economies have since agreed to a truce, with US duties on China falling to 30%, and Chinese tariffs on some US imports reducing to 10%. For now, John Leonard, a former top official at the CBP, told the BBC that there would not be any changes at the border and that tariffs would still have to be paid.
The UK and US have also announced a deal on lower tariffs between the two governments. If the White House is unsuccessful in its appeal, the US Customs and Border Protection Agency (CBP) would then issue directions to its officers to refund the payments, he said.
Trump threatened a 50% tariff from June on all goods coming from the EU after expressing frustration with the pace of trade talks with the bloc - but then agreed to extend the deadline by more than a month after EU Commission chief Ursula von der Leyen said more time was needed. The ruling also raises questions about ongoing trade talks between the US and other countries. The White House had argued in court hearings that its negotiating position would be weakened if the court struck down the tariffs.
Paul Ashworth, from Capital Economics, said the ruling "will obviously throw into disarray the Trump administration's push to quickly seal trade 'deals' during the 90-day pause from tariffs".
He predicted other countries "will wait and see" what happens next.
What does the ruling mean for the UK-US tariff deal?What does the ruling mean for the UK-US tariff deal?
The UK and US governments agreed a deal to reduce tariffs on some goods traded between the countries earlier this month.The UK and US governments agreed a deal to reduce tariffs on some goods traded between the countries earlier this month.
It included the lowering and removal of import taxes on some of the UK's main exports to America, such as cars, steel and aluminium.It included the lowering and removal of import taxes on some of the UK's main exports to America, such as cars, steel and aluminium.
That aspect of the deal is not impacted by the court ruling, but the blanket 10% tariff on most other UK goods entering the US has now been called into question.That aspect of the deal is not impacted by the court ruling, but the blanket 10% tariff on most other UK goods entering the US has now been called into question.
How that part of the deal could change remains uncertain following the ruling, with the agreement between both governments yet to be implemented.How that part of the deal could change remains uncertain following the ruling, with the agreement between both governments yet to be implemented.
The UK government has not commented on the court ruling but said it was working to ensure British businesses can benefit from the deal "as quickly as possible".The UK government has not commented on the court ruling but said it was working to ensure British businesses can benefit from the deal "as quickly as possible".
Follow the twists and turns of Trump's second term with North America correspondent Anthony Zurcher's weekly US Politics Unspun newsletter. Readers in the UK can sign up here. Those outside the UK can sign up here.Follow the twists and turns of Trump's second term with North America correspondent Anthony Zurcher's weekly US Politics Unspun newsletter. Readers in the UK can sign up here. Those outside the UK can sign up here.