President Donald Trump has filed a petition asking for a review of a new federal appeals court ruling in Washington DC that found most of his trade tariffs to be illegal.
The Trump administration asked for the Supreme Court to make a new judgement by September 10th, a full month ahead of the October 14th deadline.
Without a shakeup from a new Supreme Court ruling, as much as $200 billion from Trump’s tariffs might be refunded to the importers who initially paid them, once that mid-October deadline passes.
The Current Legal Ruling
Why were the tariffs thrown out in the first place?
Because, according to both of the judges who have looked at the case so far, Trump overstepped his presidential powers when he incorrectly used a 1977 law aimed at combating national emergencies to justify issuing his tariffs. This law — the International Emergency Economic Powers Act (IEEPA) — was likely not intended to give the President unlimited authority over tariffs.
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The specific tariffs that have been ruled illegal are the “liberation day” border taxes Trump introduced in early April.
Trump Says America Could Be “Unbelievably Poor” Again
During a press conference discussing this request, Trump highlighted his belief that a ruling against him would make the US “suffer,” according to a Reuters report.
“We made a deal with the European Union where they’re paying us almost a trillion dollars. And you know what? They’re happy. It’s done. These deals are all done. I guess we’d have to unwind them. […] Our country has a chance to be unbelievably rich again. It could also be unbelievably poor again. If we don’t win that case, our country is going to suffer so greatly, so greatly.” – President Trump
The accelerated schedule that Trump is asking for would allow arguments to be heard in November, with justices ruling by the end of the year.
How Is the Logistics Industry Impacted?
The beleaguered logistics industry is already dealing with additional new fees brought on by the trade war.
The de minimis exemption expired near the end of August, causing any imported packages that cost less than $800 to require duties. Major shipping companies are already passing some of these costs on to customers, with the UPS announcing recently that it would impose a new international processing fee of $2.50 per package for US imports.
Dozens of top US trade partners are already being tariffed, with countries like Brazil currently under a 50% tax. Many of these tariffs could be rolled back if the US Supreme Court agrees with the two other judges who have considered the case.
