A federal appeals court delivered a significant blow, declaring Trump-era tariffs an illegal use of emergency powers. This echoes historical trade disputes, reminding us of protectionist measures enacted during the Great Depression.
The ruling, while striking down the tariffs' legal basis, surprisingly leaves them in place temporarily. This pause allows for potential appeals and avoids immediate economic disruption, impacting billions in trade between the U.S. and nations like China and India.
Trump swiftly reacted, warning of potential economic devastation—a stark contrast to his previous "America First" trade policies. Experts estimate these tariffs affected over $300 billion worth of goods, impacting South Asian economies reliant on exports to the U.S. market.
"Emergency powers," used by Trump, grant presidents broad authority during crises, but courts now question their scope. This decision could reshape future trade policy and influence international relations across South Asia and beyond.
