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EEUU. White House press secretary Karoline Leavitt said that a federal court ruling that blocked the administration’s global tariffs has not impacted President Donald Trump’s trade agenda.
The three-judge panel concluded that the International Emergency Economic Powers Act (IEEPA), which Trump used to implement his sweeping tariff agenda, does not allow a president to apply universal levies on imports.
The Justice Department filed an emergency motion with the U.S. Court of Appeals for the Federal Circuit on May 29, seeking to freeze the court’s ruling pending an appeal.
Speaking to reporters at a White House press briefing, Leavitt said the three judges of the New York-based U.S. Court of International Trade “abused their judicial power to usurp the authority” of the president’s tariff agenda.
“These judges failed to acknowledge that the President of the United States has core foreign affairs powers and authority given to him by Congress to protect the United States economy and national security,” she said.
Leavitt noted that the White House expects this fight will unfold at the Supreme Court. “The Supreme Court must put an end to this,” she said.
Until then, she said, the president can employ other tariff authorities “to ensure that America’s interests are being restored around the world.”
Prior to the press briefing, a second court handed down an order blocking the president’s use of emergency powers to impose tariffs.
Analysts at Goldman Sachs said the White House has many legal tools at its disposal. Administration officials could use Section 122 and Section 301 of the Trade Act of 1974.
Section 122 grants the president to impose tariffs of up to 15 percent for 150 days on imports from countries with large trade surpluses. Section 301 authorizes the president to use broad authority to address unfair trade practices, such as tariffs, sanctions, and other retaliatory tactics.
The bank also pointed to Section 338 of the Tariff Act of 1930. This measure permits the president to apply additional duties or new tariffs of up to 50 percent on foreign goods entering the United States.
Section 232, which is already used to justify levies on steel, aluminum, and cars, could be another tariff tool. However, Goldman analysts say that the administration would have to broaden the section to other sectors by invoking national security.
Ongoing Dealmaking
Additionally, the federal court ruling won’t impact ongoing trade negotiations and agreements, according to National Economic Council Director Kevin Hassett.
In an interview with Fox Business Network on May 29, the White House economist shrugged off the court ruling by what he called “activist judges.”
While the White House appeals the tariff ruling, it is continuing with trade negotiations, Hassett said.
“If there are little hiccups here or there because of decisions that activist judges make, then it shouldn’t just concern you at all, and it’s certainly not going to affect the negotiations,” he said.
The adviser confirmed that the administration will be completing a few trade deals soon.
“There are many, many deals coming, and there were three that basically look like they’re done,” Hassett said.
He also noted that the Trump administration may establish more trade agreements in the coming weeks, allowing other countries to open their markets.
U.S. stocks surged in after-hours trading on May 28 following the court ruling. However, prior to the opening bell, the leading benchmark averages pared much of their gains.
The blue-chip Dow Jones Industrial Average rose by about 0.2 percent. The tech-heavy Nasdaq Composite Index advanced by nearly 300 points, or 1.3 percent. The broader S&P 500 added about 0.8 percent.
Like equities, U.S. Treasury yields popped in futures trading but have erased most or all of their gains. The benchmark 10-year yield dipped below 4.47 percent.
“US equity market futures greeted the court ruling with a rally of just over 1%,” ING economists said in a note. “This reaction was no doubt helped by some encouraging first-quarter results from Nvidia. US Treasuries sold off 5bp across the curve on what could be some better news for the US consumers.”
The U.S. dollar index, a measure of the greenback against a weighted basket of currencies including the British pound and the euro, pared all of its overnight gains. The index was down by 0.3 percent and is down by 8 percent year to date.
“A significant dollar advance looks unlikely given the threat of new sectoral tariffs and concerns in the US Treasury market this summer,” ING economists said.
Theepochtime.com
