SECOND FEDERAL COURT BLOCKS TRUMP'S TARIFFS

A U.S. federal court has ruled to block President Trump's tariffs, increasing uncertainty for international import and shipping activities.

In the latest development of the trade war initiated by President Donald Trump, a U.S. federal court has issued a ruling to block the sweeping tariffs imposed by the President.

The U.S. Court of International Trade ruled that the emergency statute cited by the White House does not grant the President the authority to unilaterally impose tariffs on most countries. At the same time, the court also suspended specific tariffs the U.S. had placed on China, Mexico, and Canada.

The Trump administration swiftly filed an appeal and stated: "It is not for unelected judges to decide how to respond to a national emergency."

"In practice, this introduces a whole new level of uncertainty for U.S. importers," said Lars Jensen, CEO of container shipping consultancy Vespucci Maritime, in a LinkedIn post. "Importers are now not only dealing with the risk of changing tariff levels, but also with the uncertainty of whether announced tariffs will actually be implemented. This also raises the question of whether duties paid over the past few weeks might be eligible for refunds. If the appeals ultimately uphold that the tariffs were unlawful, shippers will have valid grounds to seek reimbursement."

Earlier this month, President Trump had temporarily de-escalated the trade war with China by deciding to cut tariffs — some as high as 115% — for a period of 90 days. This move caused trans-Pacific container shipping rates to spike, as shippers rushed to import goods in time to benefit from the temporary tariff relief.

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