The battle for the legality of the American customs policy continues and arouses unrest in the stock exchanges. As reported, a court of appeal has lifted the blockage of the rates imposed on Thursday. According to reports, the US government is already considering a temporary solution.
The basis can be an existing law (from 1974) that provides rates up to 15 percent for 150 days. This reported, among other things, the Wall Street Journal, which refers to people who are known in this matter. So far, however, the government has not made a final decision and could wait with the implementation of plans. This trade law can be applied to combat payment payments or to prevent the US dollar from being devalued. The congress should approve an extension.
Another option is paragraph 338 of the Customs Act of 1930, which has not been used since the 1940s. Punitive rates between 15 and 30 percent allows goods from countries that have American products in international competition. Some observers had expected US President Donald Trump to use this instrument of ten to 50 percent for the “Liberation Day rates” announced in April.
More powers of the congress?
Lawyer Dan Ujczo, who specializes in the American Canadian commercial law, also considers it possible for Trump to ask the congress for further customs powers. Experts assume that the rates will continue to exist in any form.
As reported, a Court of Appeal had returned the extensive rates on Thursday after a short blockage of the commercial court. The claimants are asked to comment until June 5, the White House has time until 9 June.
Consequences of the high uncertainty
“The uncertainty about how the rates continue remains high, which could, for example, lead to companies that put investment decisions on hold,” said Commerzbank -economist Christoph Balz. The European parliamentarian Bernd Lange said that in his conversations in the United States he felt “nervousness about the very chaotic customs policy of Trump”. The EU must remain calm and work objectively on a household name with the US. “And if it should not be possible, formulate a clear counter -reaction.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
