In a significant legal twist, a U.S. Federal Appeals Court has reinstated tariffs originally imposed by former President Donald Trump, temporarily overturning a prior ruling by the Court of International Trade. According to media reports, the tariffs will remain in effect while the Appeals Court reviews the motions filed by the Trump administration.
Trump introduced the controversial tariffs via executive order, bypassing Congress by invoking a national emergency law — a move critics likened to the surprise midnight policy announcements common in Sri Lanka. The Court of International Trade previously ruled that Trump lacked the authority to enact such sweeping tariffs under the emergency statute.
Peter Navarro, then-White House trade advisor, told reporters the administration plans to escalate the case, hinting at a potential showdown in the Supreme Court.
Economists and critics have long questioned the economic rationale behind Trump’s tariff policies. His administration justified the tariffs as a means to reduce the U.S. trade and current account deficits, drawing on outdated Mercantilist thinking. However, experts argue that these deficits are largely driven by capital inflows — foreign investments in U.S. assets like government bonds, corporate stocks, and real estate — rather than by trade imbalances alone.