Tariffs in Turmoil: Trump's Trade Tactics Under Legal Scrutiny

A federal appeals court has temporarily reinstated President Donald Trump's extensive tariffs, countering a trade court's earlier ruling that questioned his authority. This decision follows a day after the U.S. Court of International Trade argued Trump had overstepped by imposing duties and had ordered an immediate halt.

The appellate court decided to pause the lower court's ruling to consider the government's appeal and required responses from involved parties by specified June deadlines. The decision impacts Trump's 'Liberation Day' tariffs on imports from several international partnerships, with additional duties on specific countries like Canada, Mexico, and China related to fentanyl accusations.

The future of these tariffs remains in flux, causing significant concern among businesses and governments. The temporary reinstatement allows the average U.S. tariff rate to stay at around 15%, a notable rise from pre-Trump levels, while many companies reconsider their market strategies under this increased economic uncertainty.

(With inputs from agencies.)