Trump's tariffs temporarily upheld on appeal

Less than 24 hours after being blocked in the first instance , Donald Trump's customs duties were temporarily maintained on Thursday by a US appeals court, while it rules on the merits.

On Wednesday, the United States Court of International Trade (ITC) ruled that Donald Trump had exceeded his powers by imposing untargeted surcharges, even though this is a prerogative of Congress.

His decision therefore blocked both the customs duties imposed on Canada, Mexico and China, accused of not sufficiently combating fentanyl trafficking, and the "reciprocal" customs duties imposed at the beginning of April - the application of which beyond a 10% floor was postponed until the beginning of July.

A decision that was criticized by the White House but welcomed by the United States' main trading partners, with China even calling for the surcharges to be "completely canceled."

The government then filed a request, seen by AFP, announcing that it was ready to turn to the Supreme Court to obtain this temporary suspension as early as Friday.

But an appeals court granted the government's request to consolidate the two cases on the same issue, initiated on one side by small businesses and on the other by a coalition of US states, into a single case.

The ITC's decision sparked anger at the White House, which on Thursday called the ruling "manifestly wrong" and said it was confident "this decision will be overturned on appeal."

For its part, China urged the United States to "completely cancel unjustified unilateral customs duties" after the ITC decision, through a spokesperson for the Ministry of Commerce.

"The government welcomes yesterday's decision," Prime Minister Mark Carney told the Canadian Parliament on Wednesday. "It confirms Canada's position that these tariffs are illegal and unjustified." But "we believe our trade relationship with the United States remains deeply threatened" by the tariffs still in place on steel, aluminum, and the automotive sector, Carney added, hoping to "strengthen our collaboration with reliable trading partners and allies around the world."

In detail, the judges consider that the president cannot invoke the Economic Emergency Act of 1977 (IEEPA) to institute by decree "an unlimited surcharge on products from almost all countries," according to the judgment that AFP was able to consult.

For the judges, the decrees adopted "exceed the powers granted to the president under the IEEPA law to regulate imports," this text only allowing him "to take the necessary economic sanctions in an emergency to combat an 'extraordinary and unusual' threat." Any interpretation that delegates to him "unlimited authority over customs duties is unconstitutional," the judges insisted.

In a written opinion accompanying the decision, one of the unnamed justices said it "would constitute a surrender of legislative power to another branch of government," contrary to the U.S. Constitution.

The court ruled following two complaints, one filed by an alliance of twelve US states including Arizona, Oregon, New York and Minnesota, the other by a group of American companies, which accused Donald Trump of arrogating to himself powers belonging to Congress.

On April 2, President Trump announced so-called "reciprocal" tariffs, intended to affect all countries in the world, before backing down in the face of falling financial markets, granting a 90-day pause – while maintaining a minimum surcharge of 10% – in order to open the door to trade negotiations.

After a standoff and an escalation of the colossal surcharges they imposed on each other, Beijing and Washington finally agreed in mid-May on a return to 10% on American products and 30% on Chinese products.

But on Thursday, after the International Trade Court's ruling, a spokeswoman for China's Ministry of Commerce denounced American protectionism as "benefiting no one."