US Tariff Turmoil: On, Off, On Again
May 30, 25
(IDEX Online) - Reciprocal tariffs were in turmoil today (30 May) after one US court blocked them on Wednesday (28 May) and another temporarily reinstated them the next day (29 May).
The diamond industry has been in a state of near-paralysis since Donald Trump announced a raft of new levies on 2 April, only to put them on hold for three months a week later.
Importers buying polished goods from India - which were zero-rated before the announcement - will have to pay a 26 per cent if the new tariffs are imposed.
In a surprise move on Wednesday a panel of three judges at the US Court of International Trade ruled that the president had exceeded his authority and only Congress could impose universal import duties.
But on Thursday a federal appeals court granted a request by the Trump administration to temporarily pause that court's ruling for one week, allowing plaintiffs time to prepare their case.
The on-off-on tariff turmoil has left the diamond industry in a state of historic uncertainty, with immediate economic impacts and disrupted supply chains.
Video grab courtesy White House shows President Donald Trump announcing the reciprocal tariffs.