Potential Nightmare for Trump with Tariff Refund Issues
In a series of unexpected turns, the trade policy of President Donald Trump has been met with legal challenges, financial repercussions, and global trade disruptions.
The federal court has deemed most of the tariffs announced by Trump in April as illegal, citing the President's overstepping of his office's powers when he unilaterally announced the tariffs. The court's decision, which sent markets into a frenzy and upended global trade patterns, was based on the fact that the International Emergency Economic Powers Act (IEEPA) from 1977, which grants the President broad authority to intervene during national emergencies without congressional approval, does not explicitly authorize the imposition of tariffs.
The trade duties, which the Trump administration claims will generate $300bn in revenue for the US economy, have been causing ripples across the nation, with Walmart starting to pass the cost of tariffs onto its customers. The potential continuation of these tariffs could potentially raise prices across the country, a concern recently voiced by the Federal Reserve.
Target, too, has felt the brunt of this "hugely challenging environment," having to slash its expectations for the year. John Havard, a consultant at Blick Rothenberg, warns that if the supreme court agrees with the appeals court, there will be a "nightmare scenario" of having to refund all the monies collected in respect of tariffs which should not have been levied.
The supreme court decision hinges on whether Trump abused 'economic emergency' legislation to push through the tariffs. Trump has asked the US supreme court to overturn the decision regarding the tariffs. However, Havard predicts that even if the supreme court upholds the ruling, Trump may pursue other legal avenues to push through his trade policy.
A top expert has warned that if the supreme court agrees with the appeals court, Trump may be forced to reimburse countries and companies that have had to pay tariffs. This potential outcome could be a major blow to Donald Trump, especially considering his claim that the policy would generate revenue for the US economy.
In a surprising twist, Havard predicts that Trump may not give up on tariffs should he lose in the Supreme Court. The consultant's prediction implies a potential continuation of the upheaval in global trade patterns caused by the tariffs, a prospect that could continue to challenge businesses and consumers alike.
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