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Seesaw of tariff rulings fuel more trade uncertainty

An ag policy specialist says on-going legal battles over the Trump administration’s tariff policy could have long term impacts on commodity markets.  

Brad Lubben is with the University of Nebraska-Lincoln. “That hurts potential market opportunities regardless of what the price or economic impacts of tariff itself is.”

On Thursday, a federal court of appeals reinstated the President’s reciprocal tariffs on all countries, including Mexico, Canada and China.

The ruling came less than a day after the US Court of International Trade found that the President didn’t have the authority to impose duties.

Also on Thursday, in a separate case, a US district judge ruled against the President’s tariff policy and put a 14-day hold on the ruling to give the administration time to appeal. Any appeal will be heard by a different federal court.

Lubben tells Brownfield the back and forth creates uncertainty for potential trade agreements. “The legal questions of whether they can or can’t be used really shortcuts any sort of bargaining power. Any sort of agreements that might be offered, then if tariffs are reduced and we have new deal in place, but if the tariffs aren’t allowed in any way that deal could fall apart before it gets together.”

He says reliable trading partners could turn to other countries due to these issues.