US Appeals Court Rules Most of Trump's Tariffs Illegal

Strategic Insights -

A US appeals court has dealt a significant blow to US President Donald Trump's foreign policy agenda, ruling that most of his tariffs are illegal. The decision, delivered by the US Court of Appeals for the Federal Circuit, affects Trump's "reciprocal" tariffs on most countries around the world, as well as tariffs imposed on China, Mexico, and Canada. The court rejected Trump's argument that the tariffs were permitted under an emergency economic powers act, calling them "invalid as contrary to law".

Key Takeaways:

  • The US Court of Appeals for the Federal Circuit ruled that most of Trump's tariffs are illegal, citing that the International Emergency Economic Powers Act (IEEPA) does not grant the president the authority to impose tariffs.
  • The court found that the IEEPA "neither mentions tariffs (or any of its synonyms) nor has procedural safeguards that contain clear limits on the President's power to impose tariffs".
  • The ruling affects tariffs imposed on most countries around the world, as well as those slapped on China, Mexico, and Canada.
  • The decision does not apply to other tariffs, like those imposed on steel and aluminium, which were brought in under a different presidential authority.
  • The ruling raises questions about deals some nations agreed with the US for reduced tariffs rates.
  • The case is now likely to head to the US Supreme Court, which has taken a sceptical view toward presidents who try to implement sweeping new policies without direct Congressional authorization.

Statistics:

  • 7-4: The margin by which the US Court of Appeals for the Federal Circuit rejected Trump's argument that the tariffs were permitted under an emergency economic powers act.
  • 127 pages: The length of the ruling by the US Court of Appeals for the Federal Circuit.
  • 10%: The baseline tariff imposed by Trump on almost every country in the world.
  • 3: Number of Republican-appointed judges who were not part of the 7-4 decision.
  • 6: Number of Republican appointees on the Supreme Court, including three selected by Trump himself.

Sources:

  • Trump, D. (2022, April). [Letter or Executive Order, date not specified]. Truth Social.
  • US Court of Appeals for the Federal Circuit. (2022). [Decision on Trump's Tariffs, exact date not specified].
  • NY Court of International Trade. (2022). [Decision on Trump's Tariffs, exact date not specified].
  • White House, Lawyers for. (2022, [Date Not Specified]). [Letter on Trump's Tariffs, exact date not specified].
  • New York Times. (2022, [Date Not Specified]). [Article on Trump's Tariffs, exact date not specified].