A federal appeals court temporarily reinstated the most sweeping of
President Donald Trump’s tariffs on Thursday, a day after a trade court ha
d ruled Trump had exceeded his authority in imposing the duties and ordered an immediate block on them.
The United States Court of Appeals for the Federal Circuit i
n Washington said it was pausing the lower court’s ruling to con
sider the government’s appeal, and ordered the
plaintiffs in the cases to respond by June 5 and the administration by June 9.
Wednesday’s surprise ruling by the U.S. Court of International Trade had threatened to kill or at least delay the impos
ition of Trump’s so-called Liberation Day tariffs on imports from mos
t U.S. trading partners and additional tariffs on goods from Canada, Mexico and China. The latter wa
s related to his accusation that the three countries were facilitating the flow of fentanyl into the U.S.
The trade court’s three-judge panel ruled that the Constitution gave C
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ongress, not the president, the power to levy taxes and tariffs, and that th
e president had exceeded his authority by invoking the Internation
al Emergency Economic Powers Act, a law intended to address threats during national emergencies.
Senior Trump administration officials had said they were undeterred by the trade court’s ruling, saying they expected either to prevail on appeal or employ other presidential powers to ensure they go into effect.
Insurance industry experts, executives, trades associations, and rating agencies have attempted to assess the wide-ranging affects of the tariffs on various lines of business including homeowners, personal and commercial auto, workers compensation, political risk, directors & officers, aviation, and ocean/inland marine. AM Best also looked at the potential financial exposure to insurers.
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Trump has used the threat of charging U.S. importers costly tariffs for goods from almost every other country in the world as leverage in international trade talks, a strategy the trade court’s ruling would upend. The trade court ruling had not interfered with any negotiations with top trading partners that are scheduled in the days ahead. A fourth round of talks with Japan is set for Friday in Washington, and a trade negotiating team from India is headed to the U.S. next week for talks.