What's Next for President Trump's Tariffs After Whiplash Court Rulings?
International Trade attorney Patrick Childress was interviewed for an ABC News story exploring the potential fate of tariffs imposed by the Trump Administration following two court rulings against their legality. The U.S. Court of Federal Claims and U.S. District Court for the District of Columbia each ruled against President Donald Trump's invocation of the 1977 International Economic Emergency Powers Act (IEEPA) to justify the levies, which include a baseline 10 percent tariff on most imports along with far-reaching reciprocal tariffs for a long list of trade partners. Both decisions are under appeal, and the measures remain in place for now. Mr. Childress explained what happens next will depend on the outcome at the appellate courts: Contrasting opinions will likely make the cases stretch well past the year mark and ultimately end up before the U.S. Supreme Court, whereas similar rulings could mean resolution – though even then, it's not clear whether the tariffs would stay.
"There's still a very similar amount of uncertainty," he said.
He also talked about options for the administration and importers should the measures ultimately be struck down. Section 301 of the Trade Act of 1974 allows the president to impose tariffs in response to another country's adverse trade policy, and Trump indeed relied on this law when imposing tariffs on Chinese goods during his first administration. However, because each use requires an investigation, broader applications could be difficult. Finally, companies that paid tariffs would receive refunds if challenges to them are successful, though Mr. Childress warned the government would delay issuing payments until the cases are resolved in full – which could take a year or two.
READ: What's Next for President Trump's Tariffs After Whiplash Court Rulings?