Unyielding Tariff Tactics: Trade Game Shifts Amid Legal Roadblocks

President Trump's tariff strategy faces legal challenges but is likely to persist in diverse forms. Despite a partial court ruling against tariff imposition through IEEPA, the administration has alternative legal avenues. Experts suggest foreign entities brace for continued tariff pressures reshaped by executive authority.

President Donald Trump's aggressive approach to imposing global tariffs may face legal hurdles, but it's far from being derailed, according to top trade and legal specialists. They caution that the tariffs are likely to persist, albeit possibly in a modified form.

An emergency legal stay allows the Trump administration's tariffs to remain temporarily amid litigations. The U.S. Court of International Trade recently ruled that Trump's imposition of tariffs under the International Emergency Economic Powers Act (IEEPA) exceeded legal boundaries. Nonetheless, the administration hints at utilizing other legal mechanisms to uphold its trade agenda.

According to trade consultant Dan Ujczo, the Trump administration has several options, including reframing executive orders or invoking alternative tariff statutes. Trade advisor Peter Navarro signaled potential reliance on Sections 232, 301, or other underutilized legal constructs. The legal complexities notwithstanding, both experts and former advisors suggest that stakeholders, including foreign governments, should prepare for enduring tariff strategies.

(With inputs from agencies.)