The customs duties implemented by President Donald Trump in the US have been on the agenda again with judicial decisions and political discussions in recent days. The process, which began with the International Trade Court ruling that Trump exceeded his authority, took on a different dimension with the federal appeals court suspending the decision. These developments have significant effects on the US’s trade policies and global economic relations.
Court Decisions
On May 29, 2025, the US Court of International Trade annulled four separate presidential decrees by Trump, including customs duties on Canada, China, Mexico and other countries. The court stated that the International Emergency Economic Powers Act (IEEPA) did not give the president the authority to regulate such extensive foreign trade transactions. It was also emphasized that the authority to determine customs duties belongs to Congress.
The Trump administration quickly appealed this decision. The Federal Circuit Court of Appeals temporarily suspended the lower court’s decision and ruled that the duties in question would remain in effect. This situation deepened the uncertainty regarding the future of US trade policy.
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Trump’s Statements
In a post on his Truth Social account, Trump described the International Trade Court’s decision as “incredible” and stated that the appeals court had stopped the decision. He also criticized the judges who made the decision to block the tariffs in the court and claimed that trillions of dollars were flowing from other countries to the US thanks to the tariffs he imposed.
Trade Talks with China
US Treasury Secretary Scott Bessent stated that US-China trade talks were a bit stuck and that the leaders of the two countries should meet directly. The tariff negotiations were strained when the US announced additional customs duties on many trading partners, including China, on April 2. As a result of the showdown that started with China’s retaliation, the US increased the customs tariffs it applied to Chinese goods to 145 percent, while China increased the taxes it applied to US products to 125 percent.
Trump and Fed Chair Powell Meeting
In addition to these developments, US President Trump and US Federal Reserve (Fed) Chair Jerome Powell met to discuss economic developments such as growth, employment and inflation. The Fed said in a statement that the meeting was held at Trump’s invitation to Powell. White House Spokesperson Karoline Leavitt said that Trump believes the Fed Chair made a mistake by not lowering interest rates, which puts the US at an economic disadvantage against China and other countries.
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