Trump's imposed tariffs have been declared unlawful by the US Court of Appeals.
In a significant development on August 29, the U.S. Court of Appeals for the Federal Circuit declared that the majority of tariffs imposed by President Donald Trump are unlawful. This ruling reverses an earlier lower court decision that found most of the tariffs illegal under the International Emergency Economic Powers Act (IEEPA).
The appeals court ruled that President Trump exceeded his authority under IEEPA. However, tariffs imposed under other statutes, such as Section 232 for national security reasons, were allowed to remain in place.
In response to this decision, President Trump stated, "All tariffs remain in place."
The court's statement emphasised that tariffs are primarily powers of Congress. It further stated that the law Trump cited when imposing his broadest tariffs does not grant him the authority to impose these duties.
The ruling, which was reported by European Truth and CNBC, has far-reaching implications. For instance, the German economy has already felt the impact of these tariffs, with a 0.3% contraction in GDP due to the slowdown in exports caused by U.S. tariffs.
Interestingly, on July 8, a framework trade agreement was reached between President Trump and the head of the European Commission, which imposes 15% tariffs on all EU goods in the U.S. However, on August 21, the European Union secured zero tariffs from the United States on certain goods, such as aircraft and their parts, and pharmaceutical generics.
President Trump has expressed strong opposition to this ruling, claiming that if it stands, it will "literally destroy the United States of America." The appeals court has stayed its decision until October 14, giving the Trump administration time to petition the Supreme Court to overturn this ruling.
The agreement Trump hailed as "the biggest deal ever made" may face further scrutiny in the coming months. As the legal battle unfolds, the global trade landscape could see significant changes.
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