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US to move forward with tariffs despite court ruling, say Trump aides
US President Donald Trump 's senior economic officials said the administration would press forward with its tariff policies, even after a federal trade court declared many of them illegal. They asserted that alternative legal avenues remain available to enforce trade pressure, especially on China.
Speaking to Fox News on Sunday, June 1, Commerce Secretary Howard Lutnick, insisted that tariffs were "not going away", and confirmed there were no current plans to extend a temporary 90-day suspension on the most severe tariffs, which are due to take effect in July.
'I don't see today that an extension is coming," Lutnick said, referring to Trump's so-called reciprocal tariffs, which were first introduced in April but quickly suspended.
The US President's trade approach encountered a significant legal obstacle last week when a court ruled he had misapplied emergency economic powers in launching wide-ranging tariffs. While the decision threatened to derail a central part of Trump's trade strategy, an appeals court later granted a temporary reprieve, likely setting up a Supreme Court battle.
Trump warns of US 'economic ruination' on court tariff ruling
Trump did not respond well to the court ruling, saying that this type of ruling could weaken US trade leverage and cause 'economic ruination' by allowing other countries to exploit the American economy.
"If the courts somehow rule against us on tariffs, which is not expected, that would allow other countries to hold our nation hostage with their anti-American tariffs that they would use against us. This would mean the economic ruination of the United States of America," Trump said.
Trump admin's 'Plan B' tariff plans
Last week, US officials also floated a possible 'Plan B' tariff plan that would involve invoking the rarely used provisions under the Trade Act of 1974. This allows the US government to impose temporary tariffs of up to 15 per cent for a short term period of up to 150 days to address trade imbalances.
Although nothing has been announced by the Trump administration yet, the White House did confirm that alternatives were being considered.
No new trade deals for US
Despite ambitious early claims by the administration to forge '90 deals in 90 days', only a preliminary agreement with the UK has materialised. Yet Secretary Lutnick downplayed the impact of the legal ruling, saying it merely cost the administration "a week, maybe", and reiterated confidence that the US would ultimately secure favourable trade deals.
US trade tensions flare with China
Meanwhile, tensions with China flared again on May 30 as Trump accused Beijing of violating an agreement to reduce tariff levels reached last month in Geneva, Switzerland. The President responded by announcing the doubling of steel tariffs to 50 per cent, but did not clarify how Beijing had violated the agreement. China responded by denying the allegations and warned of reciprocal actions.
Kevin Hassett, head of the White House National Economic Council, indicated on ABC's This Week that a conversation between Trump and Chinese President Xi Jinping could occur soon, although no meeting had yet been confirmed.
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