ECONOMYNEXT – A US Federal Appeals court has re-instated Trump tariffs, which were earlier halted by Court of International Trade, media reports said.
US President Donald Trump slammed the taxes through an executive order, in the style of a midnight gazette in Sri Lanka, citing a national emergency law, without going through the Congress to enact a law.
The appeals court said the Trump tariffs could stay in place until the court considered the motions filed by the administration.
The Court of International Trade ruled that Trump didn’t have the power to impose the sweeping tariffs under emergency law.
Peter Navarro, Trumps advisor on trade, has told reporters that the administration would take the case “up the chain of command”, indicating that it would go up to the Supreme Court.
Trump wrongly believes that trade deficit – or current account deficits – can be stopped by import duties basing his ideas on Mercantilist doctrine.
The US trade and current account deficit is actually caused by capital inflows coming in to the US.
Capital investments come into the US either through foreigners and foreign central banks buying US debt, or private companies buying stocks, factories or other assets in the US.
(Colombo/May30/2025)
