The U.S. Court of Appeals overturns the lower court's ruling, temporarily reviving Trump's "Day of Liberation" tariffs

U.S. Appeals Court Overturns Lower Court Ruling, Trump’s "Liberation Day" Tariffs Temporarily RevivedReuters, May 29 - A federal appeals court in the United States on Thursday reinstated President Trump’s most comprehensive tariffs. The day before, a trade court ruled that Trump’s tariffs were beyond his authority and ordered an immediate halt to the collection of these tariffs.The Washington Federal Circuit Court issued an order requiring the plaintiffs in the case to respond by June 5 and the government to respond by June 9. The court did not provide any comments or reasons.The unexpected ruling from the U.S. International Trade Court on Wednesday could lead to the cancellation or at least postponement of the "Liberation Day" tariffs imposed on most U.S. trading partners, as well as tariffs on goods from Canada, Mexico, and China.Senior officials in the Trump administration stated that the trade court's ruling did not intimidate them, and they expect to either win on appeal or use other presidential powers to ensure the tariffs remain in effect.The White House also indicated that the ruling did not interfere with negotiations with major trading partners in the coming days. The U.S. is scheduled to hold the fourth round of negotiations with Japan in Washington on Friday, and the Indian trade negotiation team will also travel to the U.S. for talks next week.In this chaotic trade war ignited by Trump, every twist and turn can trigger fluctuations in the financial markets, but there is a cautiously optimistic attitude towards the trade court's ruling, although the stock market's gains are largely limited due to market expectations that the trade court's ruling may face a lengthy appeals process.However, analysts indicate that there remains significant uncertainty regarding the future of Trump’s tariffs. According to Reuters analysis, Trump’s tariffs have resulted in over $34 billion in lost sales for businesses and significantly increased costs.As a reflection of this uncertainty, earlier on Thursday, another federal court also ruled that Trump’s imposition of at least 10% "reciprocal" tariffs on goods from most U.S. trading partners and 25% tariffs on goods from Canada, Mexico, and China was an overreach of authority granted under the International Emergency Economic Powers Act.However, the scope of that ruling is much narrower, as the relief order to stop the tariffs only applies to the toy company that filed the lawsuit