Justice Department Asks Appeals Court To Let Trump Tariffs Remain For Longer

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I expect Trump will lose his appeal this month, but he will try again.

Administration Seeks Longer Stay

Bloomberg reports US Asks Appeals Court to Let Trump Tariffs Remain for Longer

The Justice Department on Monday asked the US Court of Appeals for the Federal Circuit to extend its earlier short-term pause on a lower court’s May 28 ruling that most of Trump’s tariffs are illegal. The government said that the ruling harmed the president’s ability to conduct foreign policy.

The Federal Circuit could now rule at any time on whether or not to pause the order for the duration of an appeals process that’s likely to last months. The administration has also indicated that it will go to the US Supreme Court if the appeals court lifts the current hold.

In its filing, the administration argued that allowing the tariffs to be blocked would diminish “America’s bargaining position during sensitive trade negotiations, encouraging other countries to hold our nation hostage and catastrophically harm our economy.”

Ruling in a pair of lawsuits brought by a group of small businesses and Democratic-led states, a three-judge panel of the US Court of International Trade last month found that Trump exceeded his authority to impose tariffs under the 1977 International Emergency Economic Powers Act.

Tariffs covered by the ruling include Trump’s global 10% levy, his April 2 “Liberation Day” tariffs and measures targeting China, Canada and Mexico over fentanyl trafficking. Other tariffs on steel, aluminum and automobiles were imposed under different laws and were unaffected.

In arguing against a longer pause, the small businesses and Democratic-led states that sued have pointed to public statements by administration officials downplaying the ruling and saying they have other means to impose tariffs. The administration pushed back on that argument Monday.

“Upending the existing tariffs at this critical juncture on the theory that the President can hypothetically impose other (less effective) tariffs later, under other authorities, also does nothing to solve the timing problem: The emergencies are looming now, negotiations are proceeding now,” the government said.

Nothing Has Changed

On May 28, I commented The Court Unanimously Strikes Down Trump’s Global Tariffs, Here’s Why

The word tariff is not even in the act. Nor are synonyms like duties.

Second, there is no emergency. An emergency is a sudden unexpected crisis. Trade deficits have existed for decades.

Third, there is no unusual or extraordinary threat. Trump has even imposed tariffs on nations with which we have no trade deficit including islands inhabited only by penguins.

Fourth, there is lack of a clear authorization by Congress to grant Trump such authority. The applicable principle involved is called “major question”.

The Tax foundation estimates the cost of Trump’s tariffs to be over $2 trillion. If that’s not a “major question” then what is?

This is a similar to the setup in which Biden attempted to suspend student loans that would also have an impact of $400 billion.

Trump seeks a bigger than any previous Supreme Court “major question” ruling including student loans.

Finally, we get to the issue of delegation. The Supreme Court has ruled that Congress has no authority to simply giving away its constitutional rights.

Foolish to Try this Reasoning

Since nothing has changed, Trump will lose. And he was foolish to even try this way.

Unfortunately, that does not stop other foolish actions.

On June 6, I noted Reciprocal Tariffs Are Dead, but Trump Has 7 Other Options to Discuss

Trump wants to maneuver around the court’s tariff crackdown. His success will be limited.

Although his “success” will limited, Trump can and will do many more damaging actions.

In fact, he already has.

Trump Will Double Steel and Aluminum Tariffs to 50 Percent

On May 31, I commented Trump Will Double Steel and Aluminum Tariffs to 50 Percent

Insistent that US manufacturers who use steel will pay still more, especially the auto industry and small businesses, Trump Says Steel and Aluminum Tariffs Will Double to 50%.

Steel and aluminum tariffs are incredibly stupid. However, they are far more likely to stick because the Supreme Court may not want to buck trump on matters of national security.


More By This Author:

15 Percent Of Businesses Scale Down Or Close Shop In Response To Tariffs
Xi Calls Trump’s Bluff And Wins As Trump Negotiates With Himself
The Fed Is Very Worried About Tariff Passthrough Onto Prices
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