US Tariffs Settle But Legal Case Could Upend Trump's Strategy

The turbulence sparked by Trump’s tariff policies earlier this year has begun to ease. Following his “Liberty Day” tariff hikes, agreements have been reached with the UK, EU, and several other nations.

Most significantly, the US-China trade war appears to have de-escalated, with another 90-day pause placed on the previously extreme tariffs.

While some steep duties remain - Brazilian and Indian goods still face rates as high as 50% - overall the global trade landscape has stabilised.

However, a pivotal US court ruling expected soon could upend President Trump’s trade strategy by overturning tariff increases and nullifying related agreements.

In May, the US Court of International Trade ruled Trump exceeded his authority by invoking emergency powers to bypass Congress. The administration appealed, and the Federal Circuit let tariffs remain while the case proceeded.

On July 31st, the appeal was heard and the verdict is due before the end of September, perhaps even this month, which could overturn all of the tariffs and deals that the Trump administration have put into place this year.

A strong ruling against Trump, such as a unanimous decision, could also dismantle any chances for the Supreme Court to get involved. While Trump could pursue the reintroduction of tariffs through Congress, legal and political hurdles could make that extremely challenging.

The ruling may have a major impact on global supply chains, influencing pricing, demand, and trade flows. The team at Croft Cargo is closely monitoring developments.

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