The issuance of a ruling by a US appeals court on President Donald Trump’s “reciprocal tariff” is certainly a setback for him, but he is likely to push ahead with it, said Dr Zahid Hussain, former lead economist at the World Bank Dhaka office.
“The court verdict is a setback, but Trump’s reaction and attitude show that he is determined to implement the new tariff at any cost,” Dr Zahid told The Times of Bangladesh.
Dr Zahid predicted that President Trump will now take the issue to the US Supreme Court for a final resolution, and the higher court may rule in favor of the new tariff, which is designed to generate additional revenue to reduce the US budget deficit.
To implement the new tariff, Trump invoked emergency economic powers, bypassing the need for congressional approval, a move that was rejected by the US appeals court.
A US appeals court on Friday ruled that most of Trump’s tariffs are illegal, setting the stage for a potential legal showdown that could disrupt his foreign policy agenda, according to BBC News.
The ruling impacts Trump’s so-called “reciprocal” tariffs, imposed on most countries around the world, as well as other tariffs placed on China, Mexico, and Canada.
In a 7-4 decision, the US Court of Appeals for the Federal Circuit rejected Trump’s argument that the tariffs were permitted under emergency economic powers, declaring them “invalid as contrary to law.”
The ruling will not take effect until October 14, giving the administration time to request that the US Supreme Court take up the case.
Trump criticised the appeals court and its ruling on Truth Social, stating, “If allowed to stand, this decision would literally destroy the United States of America.”
