The ‘on-again, off-again’ path for President Trump’s tariffs continues. On Wednesday, the U.S. Court of International Trade ruled that tariffs enacted under the International Emergency Economic Powers Act of 1977 were unconstitutional, throwing out the bulk of the tariffs enacted this year. Less then a day later, the U.S. Court of Appeals for the Federal Circuit put a stay on the decision until written arguments could be reviewed.
The 24-hour back-and-forth is just the latest example of uncertainty clouding the president’s tariff policy, which has been difficult for both businesses and consumers to navigate.
“The uncertainty has only gotten greater, not less, because now you have to wait longer to know exactly where U.S. tariff policy is going to end up,” said Ernie Tedeschi, Director of Economics at the Yale Budget Lab, speaking with “Marketplace” host Kai Ryssdal before the stay from the Circuit Court. “You have to wait for the courts to decide this case. You have to see what the Trump administration might pull out in terms of different tariff authorities, and that's going to lengthen the time before we get any sort of certainty on this.”
Tedeschi, who regularly models the economic impact of the tariffs, spoke with Ryssdal about the challenges of modeling uncertainty.
To listen to the interview, use media player above.