CNBC reported that the Trump administration indicated Thursday it could ask for a temporary reinstatement of tariffs blocked this week by a ruling from a federal court.
The administration stated in a filing that it will seek “emergency” relief from the Supreme Court if US Court of Appeals doesn’t grant a stay of lower court ruling.
This move comes after a US Court of International Trade decision that invalidated dozens of tariffs on specific countries imposed by Donald Trump in accordance with the International Emergency Economic Powers Act.
Judges ruled the law did not give presidents “such unbounded power”.
The decision of the Federal Reserve imposed an immediate and nationwide block to the retaliatory trade tariffs introduced by Trump in April as part of his “liberation” day initiative.
This ruling prohibits future modifications to the tariffs that were blocked and provides the administration with 10 days in which it must comply.
Trump admin attacks court
The administration will also ask the Trade Court to suspend enforcement of the order during the process.
Sosun Bae, an attorney with the Department of Justice, wrote: “It’s critical for national security, and to allow the President to continue his delicate diplomatic efforts,”
Bae quoted statements from several cabinet members, including Marco Rubio (Secretary of State), Jamieson Greer (US Trade Representative), Howard Lutnick (Commerce Secretary), and Scott Bessent, Treasury Secretary, warning that this ruling could derail an initial trade agreement with China, and put future negotiations at risk.
The White House’s top officials have criticized the decision of the Trade Court.
Stephen Miller, Deputy Chief Of Staff of the White House said that we are “living under a judicial dictatorship.” He had earlier stated “the coup d’état is out of hand”.
Jason Miller, a Fox Business advisor, said that unelected judges were interfering in the trade and tax policy of the Obama administration.
In a TV interview, Peter Navarro, a trade advisor for the White House’s Office of Trade and Investment (OTI), called the court a “globalist”, “pro-importer” and suggested that the judges had a bias against the Administration.
Jane Restani Timothy Reif and Gary Katzmann were appointed to the panel by Ronald Reagan, Donald Trump and Barack Obama.
Reviving Trump’s tariffs is an option
Trump has made tariffs a central part of his economic plan. They are used as both a tool for negotiating and also to generate revenue that can be spent on military expenditures and tax reductions.
Navarro stated that the government still had options despite the setback.
He said: “Any lawyer in the trade knows that there are a few different choices we have.” In that respect, nothing really has changed.
Goldman Sachs’ economists say that the recent court decision striking down the reciprocal tariffs of former President Trump is a disappointment, but it’s unlikely to derail administration’s tariff policy.
The bank informed clients that the White House has multiple legal options to reinstate similar trade restrictions.
The economists noted that “this ruling is a blow to the tariff plans of the US administration and creates uncertainty. However, it may not affect the outcome in the end for many major US trading partners.”
Goldman says that one of the easiest workarounds is to use Section 122 of 1974’s Trade Act, which gives the President the power to set tariffs of 15% or more without any formal investigation.
These measures, which would be invalidated after 150 days if Congress did not approve them, could serve as a temporary replacement for levies that are now ineffective.
Goldman also pointed to Section 338 of 1930’s Trade Act as a potential alternative, noting, that although it had never been implemented, the provision allows for the President to impose tariffs of 50% or more on imported goods from countries who discriminate against US products.
Goldman, in short, believes that while the ruling will add a new layer of complexity to the legal system, it won’t have a significant impact on the ability of the Administration to implement its trade agenda.
As new information becomes available, this post Trump could take tariff block decision to Supreme Court by Friday might be updated.
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