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Federal court ruling blocking tariffs resets shipping outlook

Date :25-05-29 Visits : 34

A federal trade court's striking down of President Donald Trump's series of tariffs against most of its trading partners resets shipping expectations after months of whiplash but adds yet more uncertainty for importers.

The US Court of International Trade on Wednesday blocked Trump's use of emergency powers to impose a 10% tax across most countries and the 145% tariff hanging over US imports from China amid a 90-day reprieve. The decision will almost certainly be appealed, adding uncertainty to importers.

“The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,”the court stated.

The decision, if upheld, would draw a close to more than six months of uncertainty on the future of US tariffs and retaliatory measures against US exporters. The Trump administration may find other ways to impose leverage in trade negotiations.

Anticipation of Trump's second term and his reelection spurred importers to frontload cargo for months, before pulling back on orders after he announced a 145% tariff on April 9. The US and China agreed on May 12 to a 90-day cooling off period in which reciprocal tariffs on Chinese goods were reduced to 30%.

Before the decision Thursday, container lines warned that container space from Asia to the US would be tight through June as they worked to restore capacity removed following the plunge in bookings out of China. The peak season ahead of the winter holidays generally begins in June and runs through August.

This is a developing story.


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