【By Chen Sijia, Observers Network】Earlier this year, a US court ruled against President Trump, determining that he had no authority under the International Emergency Economic Powers Act to impose tariffs on multiple countries. The Trump administration has appealed to the US Supreme Court, which is scheduled to hold a hearing in early November.

According to a report by the Wall Street Journal on October 17, as the hearing approaches, the Trump administration is quietly relaxing its tariff policies, having exempted tariffs on dozens of products. Trump stated that after reaching trade agreements with other countries, he might exempt hundreds of products such as agricultural goods and aircraft parts. These actions indicate that the US government is preparing for a possible loss in court.

The report said that last month, Trump issued "Appendix Two," exempting tariffs on gold, LED lights, and certain minerals, chemicals, and metal products. He also announced potential exemptions for hundreds of additional items in "Appendix Three," listing products that could be granted zero tariffs under trade agreements with other countries.

According to Trump's executive order, "Appendix Three" mainly targets "products that cannot be grown, mined, or naturally produced within the United States," including certain agricultural products, aircraft and aircraft parts, and non-patented items used in pharmaceuticals.

The executive order also authorizes the US Department of Commerce and the Office of the United States Trade Representative to approve tariff exemptions without requiring Trump to sign new executive orders. A White House official stated that this move helps streamline the implementation process of tariff policies, facilitating the US government in implementing more than ten trade agreements already announced by Trump or negotiating new ones.

President of the United States Trump IC photo

Source familiar with the planning of the US government said that these changes reflect a growing consensus within the Trump administration that the US should lower tariffs on goods not produced domestically.

Everett Eissenstat, who served as Deputy Assistant to the President for International Economic Affairs during Trump's first term, said that this idea was formed over time, "This consensus does indeed exist."

After returning to the White House, Trump invoked the International Emergency Economic Powers Act to implement a series of tariff measures through executive orders without congressional approval. In May, the US International Trade Court ruled that the Trump administration's actions were illegal. The Trump administration then appealed to the Federal Circuit Court of Appeals, but the court upheld the original ruling in August with a vote of 7 to 4.

The Trump administration has now appealed to the US Supreme Court, which is scheduled to hold a hearing in early November. On October 15, local time, Trump said that he might personally go to the Supreme Court to watch the oral arguments.

Sources told the Wall Street Journal that the recent exemption policies implemented by Trump are a "hedging strategy" in the face of legal risks. If the US Supreme Court rules against the government, the Trump administration may be forced to refund most of the tariffs collected.

At the same time, the Trump administration has begun using the more legally sound Section 232 of the 1962 Trade Expansion Act to implement tariff policies. This provision allows the president to raise tariffs or restrict trade in the name of national security, and has been mainly used in recent years for steel and aluminum tariffs in the US.

On October 17, local time, Trump announced that he would impose a 25% tariff on trucks and truck parts and a 10% tariff on buses, effective November 1. At the same time, Trump expanded the tariff exemption program for automakers, allowing them to apply for credit to partially offset the costs of tariffs on car and truck parts, extending the period from 2027 to 2030.

The Wall Street Journal noted that compared to the tough stance of the Trump administration at the beginning of its tenure, the current tariff policy has softened. US Commerce Secretary Rutenberg once claimed, "There will be no exceptions for reciprocal tariffs." However, in a television interview in late July, Rutenberg softened his stance, saying, "If you grow something we don't grow, it can be imported duty-free."

Many industries in the US are urging the government to expand the scope of exemptions. For example, the American Consumer Brands Association, representing food manufacturers, previously wrote to the Trump administration, requesting exemptions for products such as coffee, oats, cocoa, spices, tropical fruits, and tinplate used in cans. Many of these products have been included in "Appendix Three" and may receive tariff exemptions under trade agreements with some countries.

This article is an exclusive publication of Observers Network. Unauthorized reproduction is prohibited.

Original: https://www.toutiao.com/article/7562915052240765491/

Statement: The article represents the views of the author. Please express your opinion by clicking the [Up/Down] buttons below.