Bulwark Takes Trump's Big Beautiful Trade Wars Are Going Off The Rails
May 30, 2025
Greta Peisch, former General Counsel for the U.S. Trade Representative and now a partner at Wiley, dives deep into the intricate world of trade law. She discusses recent court rulings that challenge Trump's tariff policies, analyzing how these outcomes could reshape future negotiations. The conversation also highlights the legal complexities surrounding emergency powers in trade and the potential hurdles facing ongoing agreements. With a focus on industries like automotive and pharmaceuticals, Peisch emphasizes the urgency of navigating these legal uncertainties.
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Legal Limits on Tariff Authority
- Trump's tariffs relied on the International Emergency Economic Powers Act, a statute usually used for sanctions, not tariffs.
- Courts found this law did not grant unbounded tariff power to the president for broad trade restrictions.
Court Pauses Tariff Invalidations
- The Court of Appeals paused an earlier ruling that had invalidated many Trump tariffs.
- This legal pause means tariffs stay on while the appeals are considered, maintaining uncertainty.
Court Finds Tariff Justifications Weak
- The court ruled that tariffs on general imports don't fit emergency powers and are beyond congressional delegation.
- Tariffs on Canada, Mexico, and China regarding fentanyl didn't directly address emergencies, weakening legal justification.