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What exactly is the Court of International Trade (CIT) of the United States, which ruled the reciprocal tariffs of the Trump administration illegal?
It is a federal court, created in 1980 and based in New York, with national jurisdiction over customs duties; imports and exports; international trade issues, such as anti-dumping laws or safeguard measures; actions against federal agencies, such as the Department of Commerce or the US International Trade Commission.
The CIT does not deal with disputes between private parties, but with disputes between traders and the federal government or cases questioning the legality of trade policies.
What does the CIT ruling say?
The Court ordered the immediate cancellation of tariffs imposed under the International Emergency Economic Powers Act (IEEPA) and required the administration to issue within 10 days the administrative orders necessary to implement the permanent injunction.
But the U.S. Court of Appeals for the Federal Circuit, based in Washington, has granted the government’s appeal, temporarily suspending the ruling.
So everything, for now, remains as before.
Which tariffs does the CIT judge illegal?
The Court invalidated the universal 10% tariff on almost all imports; the higher “reciprocal” tariffs on around 60 countries, with rates varying up to 50%; the 25% tariffs on products from Canada and Mexico, under the pretext of concerns over immigration and drug trafficking; the 20% tariffs on Chinese goods related to the fentanyl crisis; the revocation of duty-free treatment for low-value shipments from China. The universal 25% tariffs on steel, aluminum, and automobiles, imposed through different laws (Sections 232 and 301), remain in effect.