In a move that sends ripples through American politics and its economy, an appeals court ruled most of President Donald Trump's tariffs illegal on Friday. The US Court of Appeals for the Federal Circuit stated that while the President holds emergency powers, these do not extend to imposing tariffs or taxes.
This decision is seen as a significant blow to Trump's economic policies. According to an AP report, the court allowed the tariffs to remain in place until October 14, giving the Trump administration time to appeal to the Supreme Court.
In response, President Trump vehemently rejected the court's order, asserting that all tariffs would persist. He criticized the decision as erroneous and biased, warning that maintaining it unchanged could devastate America. “With the Supreme Court's help, we'll use tariffs in the interest of our nation,” he declared.
Trump Brands the Court as Biased
Trump voiced his dissent on the social media platform Truth Social, writing, “All tariffs remain. Today, a highly biased appeals court wrongly said our tariffs should be removed, but they know America will ultimately prevail. If these tariffs ever go, it will be a disaster for the country.”
In his statement, Trump also highlighted trade deficits and the unfair barriers imposed by foreign countries. He noted, “America will no longer tolerate massive trade deficits and unfair tariffs and non-tariff barriers by other countries, be they friends or foes, which weaken our producers, farmers, and everyone else. Leaving this decision as is will truly devastate America.”
Source: aajtak
Trump Administration to Seek Supreme Court's Help
Further, he mentioned that as Labor Day weekend begins, everyone should remember that tariffs are the best way to support workers and companies creating excellent Made in America products. “For years, thoughtless and ignorant politicians have allowed tariffs to work against us. Now, with the support of America's Supreme Court, we'll use them to benefit our nation, making America prosperous, strong, and powerful once again.”
US Court's Verdict on Tariffs
It's noteworthy that the US Appeals Court stated on Friday that most tariffs imposed by Donald Trump are illegal. The Washington D.C.-based US Court of Appeals for the Federal Circuit clarified that while the law grants the President the power to take several actions after declaring a national emergency, it does not mention authority for imposing tariffs or taxes.
This ruling pertains to the reciprocal tariffs imposed in April and those levied on China, Canada, and Mexico in February. Nevertheless, this decision does not affect tariffs imposed under Trump's other legal provisions, such as those on steel and aluminum.
Trump Administration Cited IEEPA
The Trump administration justified its decisions based on the International Emergency Economic Powers Act (IEEPA) in court. This 1977 law empowers the President to act in emergencies to manage extraordinary threats. Historically, it was used to impose sanctions on enemy nations or seize their assets.
Trump is the first American President to use IEEPA to impose tariffs. He argued that the ever-increasing trade deficit, weakening of American manufacturing, and drug trafficking posed potential threats to the country. On this basis, he levied tariffs on China, Canada, and Mexico, accusing these countries of failing to curb illegal fentanyl trafficking.
The court, however, pointed out that when Congress enacted IEEPA, it did not intend to give the President unlimited authority to impose tariffs. According to the Constitution, Congress holds the power to levy taxes and tariffs. Even if this power is delegated to the President, it should be explicitly stated and limited.
Courts Have Previously Ruled Tariffs as Unconstitutional
Previously, the New York-based US Court of International Trade also stated on May 28 that Trump violated his authority by imposing these tariffs. This panel of three judges included a judge appointed by Trump himself. Similarly, another court in Washington ruled that imposing tariffs under IEEPA was unconstitutional. Trump's tariff policies have faced at least eight legal challenges, including a case from the state of California.
