Trump advisors said tariffs would continue despite a court verdict
The senior economic officials of US President Donald Trump indicated that the administration intends to continue its tariff policies, despite a federal trade court ruling many of them as illegal. They maintained that alternative legal avenues continue to exist for the enforcement of trade pressure, particularly concerning China. In an interview with Fox News on Sunday, June 1, Commerce Secretary Howard Lutnick asserted that tariffs were “not going away” and clarified that there were no existing plans to prolong a temporary 90-day suspension on the most stringent tariffs, which are set to be implemented in July. “I don’t see today that an extension is coming,” Lutnick remarked, alluding to Trump’s so-called reciprocal tariffs, which were initially introduced in April but swiftly suspended.
Last week, the trade strategy of the US President faced a notable legal hurdle as a court determined that he had improperly utilized emergency economic powers to implement extensive tariffs. Although the ruling posed a significant challenge to a key aspect of Trump’s trade strategy, an appeals court subsequently provided a temporary reprieve, probably paving the way for a Supreme Court confrontation.
Trump cautions against ‘economic ruination’ in light of court’s tariff ruling. Trump expressed dissatisfaction with the court ruling, asserting that such decisions could undermine US trade leverage and lead to “economic ruination” by enabling other nations to take advantage of the American economy. “If the courts somehow rule against us on tariffs, which is not expected, that would enable other countries to leverage our nation with their anti-American tariffs that they would impose upon us.” “This would mean the economic ruination of the United States of America,” Trump said.
Last week, US officials also proposed a potential ‘Plan B’ tariff strategy that would entail invoking the seldom utilized provisions under the Trade Act of 1974. The US government is permitted to impose temporary tariffs of up to 15 per cent for a limited duration of up to 150 days in order to rectify trade imbalances. While the Trump administration has yet to make any official announcements, the White House has indeed confirmed that various alternatives are under consideration.
In light of the administration’s bold initial assertions to establish ’90 deals in 90 days’, it is noteworthy that thus far, only a preliminary agreement with the UK has come to fruition. Secretary Lutnick, however, minimized the significance of the legal ruling, asserting that it only set the administration back “a week, maybe,” and expressed optimism that the US would eventually achieve advantageous trade agreements.
On May 30, tensions with China escalated once more as Trump charged Beijing with breaching an agreement to lower tariff levels that had been established the previous month in Geneva, Switzerland. The President’s response included an announcement regarding the doubling of steel tariffs to 50 per cent; however, he failed to elucidate the specific ways in which Beijing had breached the agreement. China countered by refuting the allegations and cautioned of potential reciprocal measures. Kevin Hassett, head of the White House National Economic Council, suggested on ABC’s This Week that a dialogue between Trump and Chinese President Xi Jinping might take place shortly, although no meeting has been officially confirmed.
