Court Rules Trump Tariffs Illegal But Leaves Key Impact Intact

A federal appeals court has ruled most Trump-era tariffs unlawful. The decision was issued by the US Court of Appeals for the Federal Circuit. It represents a major legal setback for the former president’s trade policy.

The court found the tariffs exceeded presidential authority. They were imposed using national emergency powers. The ruling, however, does not immediately cancel the tariffs.

Legal Basis for the Landmark Ruling

The court specifically targeted tariffs imposed in April and February. These were part of the former administration’s trade strategy. The legal challenge argued the president overstepped his constitutional limits.

According to the court’s order, the statute does not grant tariff power. The ruling stated Congress holds the power to tax. This authority cannot be implicitly delegated to the executive branch.

The court referenced the International Emergency Economic Powers Act (IEEPA). This 1977 law is typically used for sanctions. It had never been used to impose tariffs before this administration.

Immediate Impact and Political Reaction

The tariffs will remain in effect for now. The court set an October 14th deadline for an appeal. This gives the current administration time to seek a Supreme Court review.

Former President Trump criticized the decision immediately. He called the court “partisan” and its ruling “incorrect.” He also vowed to fight the decision to keep the tariffs active.

Other tariffs on steel and aluminum were not affected. Those were imposed under different legal statutes. This ruling applies only to those justified under national emergency powers.

The legal battle over these tariffs is far from over, but this ruling sets a powerful precedent against using national emergency powers to enact sweeping trade policy. The future of these specific Trump tariffs now likely rests with the Supreme Court.

Info at your fingertips

Q1: Are the Trump tariffs still in place?

Yes, the tariffs remain active for now. The court’s ruling is stayed until October 14th to allow for an appeal to the Supreme Court.

Q2: Which Trump tariffs were ruled illegal?

The ruling applies to “reciprocal” tariffs from April and separate tariffs on China, Canada, and Mexico from February. Steel and aluminum tariffs under different laws were not affected.

Q3: What was the legal reason for overturning the tariffs?

The court found the president overstepped authority by using emergency powers. The Constitution assigns the power to levy taxes and tariffs solely to Congress.

Q4: Who brought the lawsuit against the tariffs?

The case combined two lawsuits. One was filed by five small US businesses. Another was brought by a coalition of 12 Democratic-led states.

Q5: What happens if the Supreme Court agrees with this ruling?

If the Supreme Court upholds this decision, the illegal tariffs would be permanently struck down. This could lead to reimbursements for companies that paid them.

Sources: Reuters, Associated Press