The U.S. Court of International Trade's permanent injunction against most new U.S. tariffs will temporarily halt the Trump administration's aggressive trade policies, reducing other countries' incentive to offer the United States substantial concessions, but the White House will likely expand its use of sectoral tariffs and other trade tools. On May 28, a three-judge panel under the U.S. Court of International Trade, or CIT, unanimously ruled against the Trump administration's use of the 1977 International Emergency Economic Powers Act, or IEEPA, to implement the majority of tariffs introduced during Trump's second term, issuing a permanent injunction against the tariffs. In doing so, the CIT effectively nullified all of the Trump administration's April 2 "reciprocal" tariffs -- including the 10% baseline tariff on virtually all imports and higher country-specific tariffs that were suspended until July 9 -- as well as fentanyl-related tariffs on China, Mexico and Canada. In its ruling, the...
