Thu, 29 May 2025

Thu, 29 May 2025 Where does court ruling leave Trump's tariff agenda?

BBC Verify examines what the latest development means for US and global trade.

* US Court of International Trade has struck down President Trump's tariffs imposed under IEEPA
* The court ruled that IEEPA did not give the president the authority to impose certain tariffs, affecting "fentanyl" tariffs on Canada, Mexico, and China
* The ruling also affects the "Liberation Day" tariffs announced in April, including a 10% baseline tariff on all imports to the US
* However, the ruling does not affect Trump's 25% sectoral tariffs on steel and aluminium imports or his additional 25% tariffs on car and car part imports
* A federal appeals court has temporarily stayed the trade court's judgement while it considers the White House's appeal
* The impact of the ruling is significant, with analysts estimating that the tariffs struck down would have raised almost $200bn (£148bn) annually
* The ruling could reduce the US's average external tariff from 15% to 6.5%, although this would still be a considerable increase on the 2024 level
* Analysts believe the ruling may make countries less likely to rush into trade deals with the US, but also increases uncertainty and potential for Trump to reimpose tariffs under different legal justifications
* The World Trade Organization has previously said that Trump's tariffs would lead to a decline in global merchandise trade, but this ruling could have a more positive impact on global trade.
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