The US Court of Appeals for the Federal Circuit temporarily paused a ruling that invalidated President Donald Trump’s sweeping emergency tariffs issued by the US Court of International Trade a day earlier. The rapid series of developments underscored how uncertainty over trade policy is expected to persist for the US energy sector and commodities markets.
“Particularly in the energy sector, we still have a large number of companies that are desperately trying to do long-term, extensive planning,” Bracewell’s Josh Zive told S&P Global.
If the Federal Circuit lifts its stay, the Trump administration could still pursue tariffs under Sections 122 and 301 of the Trade Act of 1974.
“There is also a reason why the president did not choose any of these options starting off,” Zive said. “They all carry with them their own complications. Sometimes that complication is the form of a process that’s required — a report, a study, an open comment period.”
Under Section 122, Trump would be required to implement across-the-board tariffs on every US trading partner, Zive noted. “So, his flexibility under any of the alternatives is much less than with the perceived flexibility under IEEPA,” he said.
