President Trump signed executive orders to raise tariff rates on more than 100 countries. The President’s authority to impose these tariffs under the Emergency Economic Powers Act is being reviewed by a federal appeals court. David Townsend focuses on trade issues for the Dorsey & Whitney law firm and says it is difficult to predict what will happen next. “If the tariffs are ruled to be illegal, U.S. importers won’t have to pay them, and there would be an immediate question about whatever replacement is imposed by the Trump Administration, whether that is illegal,” said Townsand. “I look at that as a big cloud of uncertainty over what’s been negotiated.” Townsand expects this case to end up in the Supreme Court, so it may take a long time before the issue is resolved. If trade relationships are damaged, there could be long-term consequences.
