A federal court delivered another setback to President Donald Trump’s trade agenda, ruling against the 10% tariff he imposed to replace tariffs struck down by the Supreme Court — but consumer prices are still unlikely to fall as the Iran war carries on and the administration looks for other ways to implement tariffs.
The Court of International Trade ruled 2-1 on May 7 that Trump’s February decision to use Section 122 of the Trade Act of 1974 to impose the 10% levy was unlawful. Although the two judges in the majority prohibited the administration from collecting these tariffs from Washington state and two companies who also sued over the policy, they will remain in place for most importers until the appeals process plays out.
U.S. Trade Representative Jamieson Greer confirmed May 8 the administration plans to appeal the ruling and is hopeful about its chances.
"President Trump is focused on having tariffs to protect our economy," Greer told Fox Business Network's "Mornings with Maria." "We'll obviously follow the law and do what courts tell us to do, but his policy is not changing."
Boston College economics professor Brian Bethune thinks the appeal is a long shot.
