In a surprise decision with global ripples, a U.S. trade court has ruled that the Trump administration's sweeping tariff measures under the International Emergency Economic Powers Act (IEEPA) are unlawful. The ruling puts major levies on hold just as U.S. negotiators prepare for upcoming trade talks.
"A final resolution is unlikely in 90 days," says James Viator, a trade law expert at Loyola University. As the case moves into the appeals process, Viator warns that President Trump's tariff cards – long seen as key bargaining chips – may lose their punch.
Meanwhile, Yan Liang, an economist at Willamette University, cautions that U.S. businesses are already feeling the fallout. "Supply chains are tangled, and companies face a fog of uncertainty over new investments," Liang notes. From manufacturers to retailers, the lack of clarity is exacting a heavy toll.
So, what does this mean for future trade negotiations? With tariffs in limbo, some industry players hope for a reset – a chance to strike deals without looming extra duties. Others fear a prolonged legal battle could freeze policy, stalling supply chain planning and market expansions.
As the appeals process unfolds, global markets and policymakers will be watching closely. Whether this ruling nudges talks toward compromise or adds another layer of unpredictability, one thing's certain: trade teams around the world must rethink their strategies in an ever-shifting landscape.
Could this ruling pave the way for smoother deals – or shake up negotiations even further? Share your perspective below.
Reference(s):
U.S. court halts tariffs: What it means for future trade talks
cgtn.com
