Washington: Trade talks go on amid legal setback
The United States has said it will continue pursuing trade agreements despite a major legal blow to former President Donald Trump’s tariff policy. The U.S. Trade Representative’s office confirmed that talks with international partners remain active even after a federal appeals court ruled that Trump’s use of emergency powers to impose tariffs was unconstitutional.
USTR spokesperson Jamieson Greer stressed that negotiations would move forward “regardless of what the courts may say in the interim,” signalling that the administration aims to reassure trade partners of continuity.
Court ruling and immediate impact
A federal appeals court, in a 7–4 decision, held that Trump’s imposition of tariffs on countries such as China, Canada and Mexico under the International Emergency Economic Powers Act (IEEPA) exceeded the scope of the law. The judges ruled that the statute does not provide explicit authority to levy tariffs.
However, the court allowed the tariffs to remain in effect until 14 October to give the government time to appeal the case to the U.S. Supreme Court. This temporary reprieve has kept the measures alive for now, but uncertainty looms over their future.
Trump’s reaction and political response
Donald Trump, who is campaigning to defend his economic record, strongly criticised the ruling. He vowed to take the case to the Supreme Court, insisting that the tariffs are crucial for both national security and American jobs.
White House advisors, including Peter Navarro, expressed confidence that the conservative-leaning Supreme Court would ultimately uphold the tariffs. Supporters argue that the duties are a necessary tool to counter trade imbalances and foreign practices seen as unfair to U.S. industries.
On the other hand, critics of the tariff strategy noted that the legal setback highlights the limits of presidential authority. Business groups warned that uncertainty could disrupt supply chains and investment decisions. Senator James Lankford emphasised the need for a swift resolution, saying prolonged ambiguity could harm American exporters and consumers alike.
Continuity in trade talks
Despite the court ruling, trade officials confirmed that the U.S. remains engaged in ongoing negotiations with several countries. Talks include efforts to expand agreements in Asia and rework frameworks with North American partners. Officials underlined that foreign governments remain willing to negotiate, seeing the current tariffs as leverage even as their legal standing is challenged.
For trading partners, the court case raises questions about the durability of U.S. trade policy. Yet the message from Washington is clear: discussions will not stall because of legal battles at home.
Looking ahead
The fate of Trump-era tariffs now rests with the Supreme Court, which could reshape the balance between presidential power and congressional authority on trade. Until then, U.S. trade officials face the challenge of sustaining negotiations while navigating legal uncertainty.
The coming weeks will be crucial, as both businesses and international partners await clarity on whether the tariffs will endure or be struck down.