A federal appeals court has determined that the majority of Donald Trump’s tariffs are an overextension of his emergency powers as president. The US Court of Appeals ruled on Friday that the reciprocal tariffs, which were implemented across nearly all countries the U.S. trades with, were unlawfully imposed. This decision supports a previous ruling from the Court of International Trade, which similarly found that Trump’s global tariffs did not fall under the authority granted by the International Emergency Economic Powers Act (IEEPA).
The appellate court’s 7-4 decision cited that the IEEPA does not enable the president to impose tariffs, duties, or taxes. Trump’s tariffs, announced in April at a flat rate of 10% on imports, aimed to rectify perceived “unfair” trade dynamics with the U.S. However, the court has allowed the tariffs to remain in effect until mid-October, paving the way for a potential challenge in the U.S. Supreme Court.
The IEEPA is a decades-old statute that provides the president with significant powers to respond to national emergencies stemming from foreign threats. Although it has been invoked by multiple presidents, including Barack Obama and Joe Biden, the appeals court concluded that the act does not grant broad authority to impose tariffs.
Should the Supreme Court affirm the appeals court decision, it could have substantial implications for both the U.S. economy and international trade. The ruling could instigate uncertainty in financial markets, especially concerning the billions collected from import taxes and ongoing trade negotiations. Conversely, if the Supreme Court overturns this decision, it may reinforce Trump’s approach to the IEEPA and his political standing.
As it stands, Trump’s “reciprocal tariffs” will remain in force until mid-October, while separate tariffs on steel, aluminum, and copper introduced under different authority remain unaffected.
Source: https://www.bbc.com/news/articles/cy983g8jr5do?at_medium=RSS&at_campaign=rss