Appeals Court Declares Trump’s Global Tariffs Unlawful
A federal appeals court has dealt a significant setback to President Donald Trump’s trade policy. The court ruled 7-4 that the majority of his global tariffs are illegal and exceed presidential authority. The U.S. Court of Appeals for the Federal Circuit found that Trump wrongfully invoked the 1977 International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs on nearly every U.S. trading partner.
The ruling specifically targets Trump’s “reciprocal” tariffs of up to 50% imposed on April 2, known as “Liberation Day,” as well as separate “trafficking tariffs” on China, Canada, and Mexico. The court emphasized that “the core Congressional power to impose taxes such as tariffs is vested exclusively in the legislative branch by the Constitution.”
However, the tariffs remain in place until October 14, providing the Trump administration with time to appeal to the Supreme Court. Trump responded on Truth Social, labeling the appeals court as “Highly Partisan” and promising ultimate victory. This decision complicates Trump’s ambitious trade agenda, as revenue from tariffs had reached $142 billion by July, more than double the previous year’s amount.
Source: CNBC