Federal Court Reinstates Trump's Sweeping Tariffs Amid Legal Battle

A federal appeals court has reinstated sweeping tariffs imposed by President Donald Trump, originally blocked by a trade court for exceeding presidential authority. The trade court's decision initially threatened delays on tariffs affecting U.S. trading partners, including Canada, Mexico, and China, accused by Trump of facilitating fentanyl imports.

Despite the trade court's unexpected ruling, Trump's administration remains committed to enforcing the tariffs, planning to appeal or utilize other powers. The White House emphasized that trade negotiations, involving talks with Japan and upcoming discussions with India, remain unaffected by the legal developments.

The financial markets responded with cautious optimism, yet uncertainty lingers regarding the tariffs' future. Analysts note the ongoing legal process adds to the complexity, with the tariffs already costing companies over $34 billion in lost sales and increased costs, impacting the broader economic landscape.

(With inputs from agencies.)