Update: Just after 3 p.m. Thursday, the U.S. Court of Appeals for the Federal Circuit issued a brief order granting the Trump administration's request to pause an earlier ruling that voided several of the president's tariffs.
As a result, those tariffs have been reinstated for now.
The businesses challenging the tariffs have until next Thursday to respond, while the administration has until June 9 to file any reply, the appeals court said.
Earlier: On Wednesday, a federal trade court voided some of the tariffs the Trump administration has imposed as part of its effort to shore up the trade deficit and boost manufacturing.
Less than 24 hours later, just anter noon Thursday, a second court, the District Court of Washington, D.C., issued a similar ruling.
The rulings have set the stage for a contentious court fight, as the White House immediately filed an appeal of the initial decision. The Trump administration may ask the U.S. Supreme Court as soon as Friday to pause the rulings, CNBC reported.
In the meantime, under the terms of the initial decision, the U.S. has until June 9 to direct customs officials to cease collecting the import taxes Trump imposed under an emergency powers statute.
They include the "fentanyl tariffs" that Trump imposed at the outset of his second term, the "reciprocal" tariffs he announced on April 9 (which so far have extended only to China) and the de minimis tariffs on low-cost imports from China.
The trade court also held that the U.S. must refund the tariffs it has collected under the emergency powers statute, according to analysts with Nomura Holdings financial group, who added in a note to clients that even if Trump ultimately replicates those tariffs using other authorizations, the refund obligation would remain in place.
An attorney for one of the plaintiffs said it’s not clear whether everyone would be entitled to refunds.
The rulings inject further uncertainty into the markets and the economy.
In the meantime, assuming the rulings are allowed to fully take effect, here are the tariffs that would and would not be affected.
Tariffs struck down
- 10% universal baseline tariff
- 20% duties on Chinese goods in response to its alleged failures to combat fentanyl trafficking (plus 25% on certain goods from Canada and Mexico that do not comply with the USMCA trade agreement)
- 10% "reciprocal" duty targeting all Chinese goods
- De minimis tariffs affecting on Chinese goods valued at less than $800
Tariffs that remain in place
- 25% on auto imports (excluding non-U.S. content of USMCA-compliant autos)
- 25% on auto parts imports (USMCA-compliant parts exempt)
- 25% on all steel, aluminum, and aluminum articles
