Federal Appeals Court Rules Most Trump-Imposed Tariffs Unlawful
In a significant development, the United States Court of Appeals has denied President Trump the authority to impose sweeping tariffs under an emergency law. This decision marks another major setback for Trump's aggressive trade policy.
The ruling, which upholds the decision of the lower instance in large parts, does not directly prohibit the tariffs. However, it reinforces the argument that the power to levy taxes, tariffs, and duties lies with the Congress, not the President, according to the US Constitution.
The case stems from a lawsuit filed against the court in New York in April, with a dozen US states taking legal action. Ten of these states are governed by Democrats, while the remaining two are led by Trump's Republicans.
The tariffs in question relate to the country-specific tariffs first announced by Trump in April, affecting dozens of trading partners of the USA. Some tariff rates have changed due to negotiations with certain countries, for example, a 15% tariff on most EU products has been in effect since August 7.
Trump has announced that he will appeal to the Supreme Court regarding the tariffs. In response to the court's decision, Trump criticised the appeals court as biased and described the abolition of tariffs as a total catastrophe that would "literally destroy" the country.
The President justifies his radical tariff policy with alleged trade deficits that he claims pose a national security risk to the USA. However, the plaintiffs argue that the national trade policy should not depend on the President's whims.
This decision will not come into effect before October 14, allowing the US government time to appeal to the Supreme Court. It remains to be seen how the highest court in the land will rule on the matter.
It is worth noting that some searches for the ten US states led by Democrats that investigated President Trump's announced tariffs in April of a certain year yield no available results. This could indicate that the details of the states involved in the lawsuit are not widely publicised.
As the situation develops, it is clear that the future of Trump's tariff policy remains uncertain. The President's critics argue that the policy is damaging to the economy and international relations, while the President defends his actions, stating that all tariffs remain in effect. The Supreme Court's ruling will likely have far-reaching implications for US trade policy and the economy.
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