US court reactivates Trump's tariffs-effects on the trade!

US court reactivates Trump's tariffs-effects on the trade!

New York, USA - A US Federal Court of Appeal reimbursed extensive customs measures to the Trump government on Thursday, May 29, 2025. This decision is followed by a previous judgment by the Court of International Trade in New York, which had blocked the most tariffs. The tariffs should serve to force trading partners such as the European Union and China to concessions, which in the past has been perceived as a unilateral escalation of international trade conflicts. The background to this argument is the introduction of reciprocal tariffs announced by Trump on April 2, 2025 to compensate for existing trade weights.

The legal proceedings could have far-reaching consequences, especially after a federal court in the United States had denied the powers to impose such extensive tariffs, citing an emergency law. The government immediately appealed against this decision, which could possibly lead to the case in front of the Supreme Court, since Washington has confirmed its determination to cope with the trade crisis. These developments were received positively by the stock markets.

Details about the tariffs

The tariffs that Trump has enacted affect almost all acting countries, in particular specific goods from China, Mexico and Canada. According to the latest information, basic tariffs of ten percent apply to almost all imports to the USA. However, some tariffs, such as those on steel, aluminum and cars, can continue to be maintained, based on another law. It must be emphasized that the court found that the tariffs do not contribute to solving the problems they should fix.

The possible legal framework for maintaining these tariffs are diverse. Financial experts in particular see opportunities that Trump could possibly implement his tariffs through other trade laws. Section 122 of the Commercial Act could enable tariffs of up to 15 percent without the need for formal examinations. In addition, studies on unfair trade practices in accordance with Section 301 could be initiated, which is time -consuming.

trade relationships and economic effects

The current situation also significantly influences trade relationships between the USA and the EU. The USA imported 2023 were worth $ 3,100 billion and exported goods worth $ 2,000 billion, which shows a significant level of trade balance. A fluctuation of the tariffs lies a danger: they could redirect international trade brakes and consumption to domestic products, which is particularly dangerous for developing countries that are dependent on imports.

The Kiel Institute for the global economy estimates that the gross domestic product of the EU could decrease by about 0.5 percent if the new tariffs are completely implemented. The German auto industry is very concerned about these developments because the trade balance for cars is strongly in favor of Germany. In 2023, land vehicles worth 34 billion euros were exported to the USA from Germany and only imported for 8 billion euros. High tariffs can protect domestic industries at short notice, but also inhibit long -term modernization and development.