Trump in the customs storm: Court decides against his trade power!

Trump in the customs storm: Court decides against his trade power!

The White House is under pressure after a federal court in New York has classified parties of President Donald Trump's controversial customs policy as illegal. Trump's spokeswoman, Karoline Leavitt, commented on the judgment and described it as a misuse of judicial power. She emphasized that Trump had exercised his powers as part of a national emergency and admitted that the government would take legal action against the judgment. Despite the judicial order, the White House will try to continue the legal dispute and is optimistic about gaining in higher instances, according to Leavitt. The judgment aims to block the comprehensive tariffs that Trump had introduced as part of his trade policy.

The court found that the tariffs do not contribute to solving the economic problems that they should allegedly fix. These tariffs are a central component of Trump's strategy to combat the trade deficit that the United States has had annually since 1975. In particular, trading in China, Mexico and Canada is far -reaching by the tariffs. Trump's approach could lead to companies re -evaluating their supply chains in order to counter the effects of tariffs. The US government also plans to go to the Supreme Court in the event of a defeat before the Court of Appeal, so that the legal dispute could extend.

The effects of customs policy

The introduction of tariffs is part of Trump's efforts to reduce a trade balance deficit. In 2017, the US foreign trade deficit was $ 552 billion, which corresponded to 2.85 percent of gross domestic product. Trump criticized that the US markets were flooded by foreign goods, especially from China and the EU. Statistics show that the USA in the goods trade has a massive deficit, while there is a surplus in service trade.

The trade deficit is due to the fact that the USA imports more goods than exporting, which is usually associated with negative effects on employment. In 2017, the bilateral deficit with China was around $ 335 billion and $ 104 billion with the EU. This imbalance could be reinforced by Trump's protectionist approaches. So far, the base tariffs of ten percent have remained in the United States for almost all imports, and tariffs on steel, aluminum and cars can continue to be collected due to other legal requirements.

legal situation and political perspectives

Trump is the first US president to use the 1977 emergency law on tariffs. This decision led to several complaints from small companies and US federal states against customs policy. Lawyers and financial experts consider the way that Trump has taken as questionable because he could exceed the legal limits of his powers. Nevertheless, experts have also shown ways how Trump can continue his agenda through other legal provisions, such as the 1930 Commercial Act, which allows tariffs of up to 50 percent.

The current situation means that companies have to weigh up how they react to the changing framework conditions. A trade war could not only endanger the US economy, but also global economic stability. A decline in this area could lead to a global recession that would also affect the USA, which could be undermined, which Trump's long -term strategy of limiting China as a world power.