US court pauses decision blocking Trump’s 10 percent global tariff

A coalition of 24 states have argued that Trump’s latest tariffs do not meet the standards of 1974 Trade Act.A Federal Appeals Court in the United States has temporarily paused a lower court decision to block President Donald Trump’s 10 percent global tariff.On Tuesday, a US Federal Appeals Court issued a short-term administrative stay as the court case continues.Recommended Stories list of 3 itemslist 1 of 3Africa’s richest man plans new Mombasa oil refinery: Why this matterslist 2 of 3EBay rejects GameStop’s $56bn bid as ‘neither credible nor attractive’list 3 of 3US faces rising costs with Iran war driving energy prices, inflation higherend of listAt stake is whether the tariff issued under Section 122 of the 1974 Trade Act falls within the scope of Trump’s presidential authority.Trump imposed the sweeping 10 percent import tax in January, after the Supreme Court struck down another set of far-reaching tariffs that the president justified using the International Emergency Economic Powers Act (IEEPA).In that case, the Supreme Court ruled that the IEEPA does not authorise the president to impose blanket tariffs, as Trump had argued.Similar questions have arisen about Trump’s new tariff policy. On Friday, a panel at the US Court of International Trade ruled two to one that Trump had failed to meet the criteria under Section 122 to apply the new tariffs.“The President’s Proclamation fails to assert that those required conditions have been satisfied,” the lower-court ruling asserts.It added that the proclamation “is invalid, and the tariffs imposed on Plaintiffs are unauthorized by law”.Tuesday’s appeals court decision paused that ruling temporarily, to allow the White House time to respond.But the plaintiffs — a coalition of 24 states — have argued that Trump’s tariff campaign is an abuse of executive power. They have also pointed to the downstream effects, as consumers shoulder the costs of the added taxes.