Tariff Tug-of-War: Trump's Trade Battle Faces Court Challenges

A federal appeals court has temporarily reinstated President Donald Trump's extensive tariffs, just a day after a trade court ruled that Trump had overstepped his authority. The United States Court of Appeals for the Federal Circuit is reviewing the government's appeal, with responses due early next month.

The original ruling threatened the imposition of what Trump calls Liberation Day tariffs, affecting imports from various nations, with added levies on Canada, Mexico, and China over allegations related to fentanyl trafficking. The trade court emphasized Congress's constitutional power to levy taxes, challenging Trump's application of the International Emergency Economic Powers Act.

Analysts and global trading partners are watching closely as the appeal process unfolds. Financial markets remain volatile, with the prospect of lengthy legal proceedings adding to the uncertainty. Meanwhile, trade negotiations continue, with significant talks with Japan and India imminent.

(With inputs from agencies.)