Larry Kudlow urges ending the legal battles over tariffs

In a significant development, the Washington, DC Appeals Court has upheld a democratic trade court decision, standing in the way of President Donald Trump's reciprocal fair trade initiative. This decision comes as the President continues to use emergency powers to rebalance trade and bring large-scale investment back to the U.S.

The President's authority to regulate imports comes from the International Emergency Economic Powers Act (IEEPA), not from Congress. This act has been a key instrument of his foreign policy and his authority as commander in chief should not be denied.

The tariffs implemented by President Trump are generating hundreds of billions in tariff-related revenues. However, if refunds are necessary due to the court ruling, it will result in a massive, chaotic money swap. Customs and Border Protection may struggle to handle the refunds, as they will need to go through the Treasury and the IRS.

The matter is likely to reach the Supreme Court, but any decision is not expected until next year. The name of the judge who blocked President Trump's tariff legislation, which is set to be reviewed by the Supreme Court, is Judge Beryl Howell.

It was never the 1930s, and large-scale trade war retaliation never happened. Instead, we got deals. The President's tariff plan has been well-received through a series of brilliant deals with allies around the world.

However, the skyrocketing trade deficit itself seems unsustainable. Every deal has enormous foreign policy implications. The President's trade strategy is not being implemented on a permanent basis, and he has other options, such as using the National Security Section 232 or the Unfair Trading Practice Section 301, but these laws would take longer to implement.

In the meantime, the tariffs will remain in place and continue to generate revenues until a final decision is made. The President seeks to rebalance trade and bring large-scale investment back to the U.S., and his actions so far suggest a commitment to this goal.

As the situation unfolds, it is clear that the President's trade policy will continue to be a significant topic of discussion and debate. The ultimate outcome will have far-reaching implications for the U.S. economy and its relationships with other nations.