A US appeals court ruling could be about to undo President Trump’s tariff and trade deal strategy by effectively overturning the work that his administration has done so far.

A verdict due later this month or next is being closely watched around the globe following a Trump administration appeal that was heard on July 31st.

In May, the US Court of International Trade unanimously found that the president had illegally imposed tariffs by the use of an emergency powers statute that bypassed Congress.

As a result of the appeal being lodged, the Federal Circuit allowed the tariffs to remain in place while the legal battle continued.

There seems to be increasing concerns from the Trump administration that the appeal could fail, and that a unanimous verdict against them may reduce the likelihood of them proceeding to the Supreme Court.

If Trump loses the appeal, he would still be able to pursue his tariff legislation through Congress, but that will come with further obstacles and some observers believe he may struggle to get traction.

It is theoretically possible that the US government may have to refund all of the additional duties that have been imposed on imports since the introduction of his ‘Liberation Day’ tariffs, and also cancel the subsequent trade deals.

While that may seem unlikely, the court’s verdict could have a significant impact on global trade. The team at Westbound are monitoring developments with great interest.

If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.