The Trump administration’s trade war against the world has taken another twist, with two US courts declaring Trump’s tariff taxes illegal in the last two days.
The impact of the new taxes has been felt hard in the world of synths and electronic music gear, as so many instruments are either made in China, or made in the US using Chinese components.
In February, the National Association Of Music Merchants warned that Trump’s tariffs would raise instrument prices and hurt US manufacturers.
The Association’s warning has proven to be accurate, as prices on synths have gone up, in some cases more than doubling. And some US companies have put new instruments on hold, waiting to see where tariff rates ultimately land.
On Wed, a three-judge panel at the U.S. Court of International Trade (CIT) ruled that the International Emergency Economic Powers Act (IEEPA) did not grant the president authority to bypass Congress’ control over economic policy and commerce. The 1977 law has been used by Trump as justification for the majority of his tariff tax hikes.
“The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder,” they ruled.
A second federal court also blocked the bulk of President Trump’s tariffs on Thursday, ruling he cannot claim unilateral authority to impose them by declaring emergencies over trade deficits and fentanyl.
The administration is challenging both rulings. An appeals court has paused the first ruling, and ordered both sides to provide written arguments on the issue by early next month.
If The Trump Tariffs Are Illegal, Do We Get Our Money Back?
It’s estimated that Americans have already paid more than 10 billion dollars in additional taxes because of the administration’s tariffs. The court’s decisions would require the administration to refund this money.
It’s unlikely that consumers will get any of this money back, though. Tariffs are generally paid by importers and manufacturers, and then passed on to consumers in the form of higher prices. So, unless you directly paid the tariff, it’s unlikely you’ll see any refund.
And it will take months, if not years, for the constitutional questions the administration’s policies have raised to work their way through the court system.
Is US economic policy making you put off gear purchases? Share your thoughts in the comments
