I expect Trump will lose his appeal this month, but he will try again.
Administration Seeks Longer Stay
Bloomberg reports US Asks Appeals Court to Let Trump Tariffs Remain for Longer
The Justice Department on Monday asked the US Court of Appeals for the Federal Circuit to extend its earlier short-term pause on a lower court’s May 28 ruling that most of Trump’s tariffs are illegal. The government said that the ruling harmed the president’s ability to conduct foreign policy.
The Federal Circuit could now rule at any time on whether or not to pause the order for the duration of an appeals process that’s likely to last months. The administration has also indicated that it will go to the US Supreme Court if the appeals court lifts the current hold.
In its filing, the administration argued that allowing the tariffs to be blocked would diminish “America’s bargaining position during sensitive trade negotiations, encouraging other countries to hold our nation hostage and catastrophically harm our economy.”
Ruling in a pair of lawsuits brought by a group of small businesses and Democratic-led states, a three-judge panel of the US Court of International Trade last month found that Trump exceeded his authority to impose tariffs under the 1977 International Emergency Economic Powers Act.
Tariffs covered by the ruling include Trump’s global 10% levy, his April 2 “Liberation Day” tariffs and measures targeting China, Canada and Mexico over fentanyl trafficking. Other tariffs on steel, aluminum and automobiles were imposed under different laws and were unaffected.
In arguing against a longer pause, the small businesses and Democratic-led states that sued have pointed to public statements by administration officials downplaying the ruling and saying they have other means to impose tariffs. The administration pushed back on that argument Monday.
“Upending the existing tariffs at this critical juncture on the theory that the President can hypothetically impose other (less effective) tariffs later, under other authorities, also does nothing to solve the timing problem: The emergencies are looming now, negotiations are proceeding now,” the government said.
Nothing Has Changed
On May 28, I commented The Court Unanimously Strikes Down Trump’s Global Tariffs, Here’s Why
The word tariff is not even in the act. Nor are synonyms like duties.
Second, there is no emergency. An emergency is a sudden unexpected crisis. Trade deficits have existed for decades.
Third, there is no unusual or extraordinary threat. Trump has even imposed tariffs on nations with which we have no trade deficit including islands inhabited only by penguins.
Fourth, there is lack of a clear authorization by Congress to grant Trump such authority. The applicable principle involved is called “major question”.
The Tax foundation estimates the cost of Trump’s tariffs to be over $2 trillion. If that’s not a “major question” then what is?
This is a similar to the setup in which Biden attempted to suspend student loans that would also have an impact of $400 billion.
Trump seeks a bigger than any previous Supreme Court “major question” ruling including student loans.
Finally, we get to the issue of delegation. The Supreme Court has ruled that Congress has no authority to simply giving away its constitutional rights.
Foolish to Try this Reasoning
Since nothing has changed, Trump will lose. And he was foolish to even try this way.
Unfortunately, that does not stop other foolish actions.
On June 6, I noted Reciprocal Tariffs Are Dead, but Trump Has 7 Other Options to Discuss
Trump wants to maneuver around the court’s tariff crackdown. His success will be limited.
Although his “success” will limited, Trump can and will do many more damaging actions.
In fact, he already has.
Trump Will Double Steel and Aluminum Tariffs to 50 Percent
On May 31, I commented Trump Will Double Steel and Aluminum Tariffs to 50 Percent
Insistent that US manufacturers who use steel will pay still more, especially the auto industry and small businesses, Trump Says Steel and Aluminum Tariffs Will Double to 50%.
Steel and aluminum tariffs are incredibly stupid. However, they are far more likely to stick because the Supreme Court may not want to buck trump on matters of national security.
It’s being reported this morning that a trade framework with China is starting to solidify. That’s good news, but let’s not get out over the tips of our skies just yet.
I have a feeling that Putin has been buying US defense industry stonks like crazy. Or he would be crazy if he didn’t, after the last statement of the NATO Chief.
(on the dark humor part, Zelensky should insure Ukraine with a Russian insurance company, if he wants the attacks to stop).
Now that’s our of the box thinking! love it!
This shows the present tariff negotiations to be a waste of time since trump has no authority.
(TACO) ~~~ Trump Always Chickens Out so China will gain further advantages.
Trump couldn’t negotiate his way out of a paper bag. Can he create chaos? Yes!
The House and Senate could convene tomorrow and pass legislation granting the President authorization to impose tariffs based upon some agreed upon criteria. But Trump hates that constitution thing.
Trump cant go through congress. He has to do all these deeds by exc order because his policies are not as popular on a voter level. So if representatives voted these polices through they would face a back lash during elections. If they lose the majority the party is over.
i been getting lots of reels where dems in congress are trying to debate republicans on various issues. They wont reply at all. They know these policies are unpopular illegal or even un constitutional. So the just sit there. That worries me because they are Rolling over their authority to trump. While he attacks the judicial system.
I know plenty of republicans who hate trump but still voted for republican for congress senate.
Why even have a federal government executive branch? Maybe we should make US Corporations into the executive branch. Capitalism baby.
that is what Mussolini invented. but of course he used the union street thugs to gain power. corporatism is what he called it. aka fascism. different from marxism and freedom. and of course outright kingdoms.
You need to have an executive branch to implement the legislation created by the legislative branch.
Actually it has a name: Fascism!
A real David vs. Goliath story.
Our processes still do function – for now, anyway.
Excellent post. The markets yearn to be free and earn some profits no matter how many political clowns try to get in the way…
In the end, profits will prevail because they always do.
i’d suggest looking at the stock market in 1929 onward a few decades. i personally saw the affects of a crumbling evil empire after the old USSR was sold off for spare parts to the oligarchs. starting with their flag officers. i had an oligarch as a client. on board of largest oil company there. this kind of stuff does happen. we are going down slower and softer but the destination might be the same. everyone but the top 1% of 1% has worthless pensions and bank and equity accounts. stocks will still have value, but you might need a billion USD to purchase a retirement or property. they’ll tax you ought of your property to feed the oligarchs holdings.
All that matters is the stock market going up.
Most accurate statement uttered in the gentrified monied class run America, with the complicity extending down to all but the poorest via IRA/401ks which has enabled all sorts of malfeasance and chicanery since its inception/widespread adoption starting in the early 80s and now continuing. I’ve seen it on this blog–who cares as long as you can profit from it. This policy is good, look no further than the market. It’s actually quite disgusting. Governments and financial markets are way too cozy thanks to the complicity built into the system by involving >60% of the population in the game.
That was a great post, but Avery2 is big on sarcasm and irony.
ERISA laws early 70s for sure was a great device to remove corp pensions and get the middlebrows into praying at the altar of the dow. i grew up in a rich wall street hood. family on the street since the 1930s including myself. our yacht club was for insider trading and some sailing on the side. YOU NAIL IT
You really have no idea how Wall St works, do you?
Yeah, just break open the gas gauge cover, grab the needle, turn and more gas ($) magically appears. 2008-2009, 2020-2022….
correct. the cause of the brain washing to not care about anything but stock or r/e portfolio is simple. nihilism. read ominous parallels. watch “century of self”. you will see how the powerful and owners a century ago brainwashed the middlebrows.