Federal court blocks Trump’s tariffs

In the latest twist in the trade war unleashed by Donald Trump, an American federal court has blocked the president’s sweeping tariffs.

The Court of International Trade has ruled that the emergency law invoked by the White House does not give the president unilateral authority to impose tariffs on nearly every country. It has also blocked the separate levies the US imposed on China, Mexico, and Canada.

The Trump administration has swiftly lodged an appeal saying: “It is not for unelected judges to decide how to properly address a national emergency”.

“In practical terms, this adds a new level of uncertainty into the mix for US importers,” commented Lars Jensen, the head of container shipping advisory Vespucci Maritime, via LinkedIn. “Not only do they have to contend with the risks associated with changing tariffs. Now it is also cast into doubt whether or not the announced tariffs will even be implementable – and this also raises the question whether tariffs paid in recent weeks can ultimately be reclaimed. If the tariffs are ultimately (after appeals) found to be unlawfully implemented, shippers should have a good case for getting the paid tariffs back.”

Trump backed down on his trade war with China earlier this month, slashing tariffs by 115% for a 90-day period, leading to a huge box freight rate rise on the transpacific as shippers rush to meet the deadline.