"After Beijing announced the rare earths limits last month, Trump threatened to hit China with an additional 100% tariff that would have hiked the overall rate above 150%. Negotiations ensued, culminating in a meeting between Trump and Chinese President Xi Jinping in South Korea on Thursday. Among the terms of a ceasefire, the U.S. agreed to set aside the 100% tariff, while China eased exports for rare earths."
""I think just those two alone have shown us that the president has used it responsibly," he added, while saying the trade deficit is another emergency that merits the use of tariffs under IEEPA. But critics have also highlighted Trump's recent announcement that he will add a 10% levy on Canada over an anti-tariff TV ad Ontario's government ran as evidence he is trying to use emergency powers capriciously."
A Supreme Court case will determine whether the White House can use the International Emergency Economic Powers Act (IEEPA) to impose reciprocal tariffs tied to the fentanyl trade. Lower courts have ruled that IEEPA cannot be used for those tariffs. The administration argues IEEPA was appropriately used after China restricted rare-earth exports and faced the prospect of a punitive 100% tariff, prompting negotiations and eased exports. The administration also cites tariffs as a tool addressing the fentanyl crisis and the trade deficit. Critics point to a proposed 10% levy on Canada as evidence of capricious emergency-power use. Court arguments may signal the eventual ruling.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]