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Panel rules that tariffs on US ag buyers must be paused

A three-judge panel of the US Court of International Trade has ruled that President Trump must temporarily pause tariffs imposed on the three largest buyers of US ag products.

The ruling on Wednesday requires the administration to remove the 10 percent tariffs imposed on Canada, Mexico and China and every other country because tariffs can only be imposed by Congress.

Jim McCormick with AgMarket.Net tells Brownfield this may not have a significant impact since tariffs were already lowered prior to the ruling. “I think we’re still at kind of a status quo of waiting to see what happens, because at this point, I’m guessing the Trump administration is still going full tilt to try to get these trade deals done with all these different countries, including Mexico, Canada and the Chinese.”

But, he tells Brownfield, it may adjust the administration’s approach on trade. “You can use the stick as the tariffs as a way to try to get them to maybe cut a deal with you. Maybe you lost that stick approach, but in general the concept of trying to get these deals done is still on the table.”

He says commodity prices haven’t had reacted much. “In the agricultural markets, I would say in general it’s been a relatively muted response. The livestock market has seen a little bit of a boost and maybe that’s more of a consumer situation.”

The President imposed tariffs under the 1977 International Emergency Economic Powers Act, but the court ruled that it IEEPA does not authorize any of the tariff orders.

The administration says it plans to appeal the ruling to the US Court of Appeals for the Federal Circuit.

Jim McCormick:

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