US Appeals Court Declares Most of Trump’s Tariffs Illegal

A federal appeals court has ruled that the majority of President Donald Trump’s global tariffs are illegal, significantly undermining a cornerstone of his trade policy. The US Court of Appeals for the Federal Circuit determined that the law Trump utilized to impose these tariffs, the International Emergency Economic Powers Act (IEEPA), does not grant him the authority to enact such measures.

Ruling Paused Pending Supreme Court Appeal

The court’s decision is not yet final. It has paused the ruling until October 14, 2023, allowing the Trump administration time to appeal to the US Supreme Court. Trump is expected to escalate the case to the highest court in a bid to uphold his tariff policy. As of now, the White House has not issued a comment regarding the ruling.

The Trump administration has maintained that the IEEPA authorizes the President to impose tariffs on foreign countries when necessary to address a national emergency. Using this interpretation, Trump initiated “reciprocal” tariffs globally in April, asserting they were essential to counteract unfair trade practices.

Previous Court Rulings on Tariffs

Earlier this year, in May, a lower federal trade court rejected Trump’s argument, stating that the IEEPA cannot be applied to impose such extensive global tariffs. That court also invalidated his “reciprocal” tariff strategy. Nevertheless, the appeals court temporarily stayed the enforcement of that decision while Trump pursues his appeal.

The implications of this ruling extend beyond mere policy. It could affect the economic landscape and international relations, particularly with nations that have been subjected to these tariffs. As developments unfold, the outcome of this legal battle may set significant precedents regarding presidential powers in trade matters.

With the Trump administration planning to challenge this decision, observers will be closely monitoring the Supreme Court’s response and its potential impact on future trade policies.