Major Trade Setback: Court Declares Trump’s Global Tariffs Unlawful
A federal appeals court dealt a significant blow to President Trump’s trade policy on Friday. The court ruled that the majority of his extensive global tariffs are illegal and exceed his presidential authority. The U.S. Court of Appeals for the Federal Circuit, in a 7-4 decision, found Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose “reciprocal” tariffs of up to 50% on most trading partners to be unconstitutional.
The ruling impacts tariffs on nearly 70% of U.S. goods imports, potentially compelling the government to refund billions in collected duties. Trump has already pledged to appeal to the Supreme Court, denouncing the decision as “partisan”. He warned that the ruling, if upheld, would “literally destroy the United States of America”. The tariffs will remain in effect until October 14 while the appeals are pending.
Source: CNBC