Court Rules Trump’s Tariffs Unlawful, Major Setback for Protectionist Policy
On Friday, a federal court of appeals ruled that most of the import tariffs imposed by President Donald Trump were unlawful, thus upholding an earlier decision by a lower court. This ruling is a major setback for the president’s protectionist trade policy., reports 24brussels.
The court stated that Trump cannot invoke the International Emergency Economic Powers Act (IEEPA) to justify increased import duties on various trading partners. Several small businesses and states led by Democrats challenged Trump’s extensive use of trade powers, arguing that only Congress holds the authority to impose taxes and tariffs.
In May, a federal district court had already favored these challengers, declaring many of the president’s tariffs invalid. The court found that the law does not grant Trump “unlimited authority” to conduct his global trade war, according to U.S. media reports.
The recent ruling specifically impacts Trump’s ‘reciprocal tariffs’ on imported goods, which varied from 10% to 50% based on the country. These duties were levied on most nations worldwide, along with additional tariffs targeting China, Mexico, and Canada. Tariffs imposed on certain industries, such as cars, steel, and aluminum, were introduced under different legal authority and are therefore not affected by this ruling.
In response to the ruling, Trump took to social media stating, “If allowed to stand, this Decision would literally destroy the United States of America.” He further lamented that removing the tariffs would result in financial weakness for the country and reiterated the need for strength.
The tariffs will remain in effect until October 14, allowing the Trump administration an opportunity to appeal this decision to the Supreme Court.