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Tariffs

US Appeals Court Rules Most Trump Tariffs Illegal

Strategic Insights

— 1 min read

A federal appeals court has dealt a significant blow to President Donald Trump's foreign policy agenda, ruling that most of his tariffs are illegal. The ruling, which affects tariffs on countries around the world, including China, Mexico, and Canada, hinges on the court's determination that the tariffs were imposed under an emergency economic powers act that does not grant the president such authority. The decision is set to take effect on October 14, although it is likely that the Trump administration will appeal to the Supreme Court to overturn it.

Key Takeaways:

  • The US Court of Appeals for the Federal Circuit ruled that most tariffs issued by President Trump are illegal, with a 7-4 decision.
  • The ruling specifically targets Trump's 'reciprocal' tariffs, imposed on most countries around the world, as well as other tariffs slapped on China, Mexico, and Canada.
  • The court rejected Trump's argument that the tariffs were permitted under the International Emergency Economic Powers Act (IEEPA), calling them 'invalid as contrary to law'.
  • Trump has argued that the tariffs are necessary to address a national security threat posed by a trade imbalance.
  • However, the court ruled that imposing tariffs is not within the president's mandate, and that it is 'a core Congressional power'.
  • Trump has criticized the appeals court, saying that the ruling would 'literally destroy the United States of America' if allowed to stand.

Statistics:

  • The tariff decision was a 7-4 decision in the US Court of Appeals for the Federal Circuit.
  • The ruling affects tariffs on countries around the world, including China, Mexico, and Canada.
  • The tariffs will not take effect until October 14, 2023.
  • The International Emergency Economic Powers Act (IEEPA) does not grant the president authority to impose tariffs.

Sources:

  • The ruling from the US Court of Appeals for the Federal Circuit, specifically the 7-4 decision in the unnamed case.
  • President Trump's statement on Truth Social criticizing the appeals court.

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