Most Trump tariffs ruled illegal by appeals court, dealing major blow to trade policy
Original story by
CNBC•Aug 29•Politics, Law, Trade
📰 Article Summary
A federal appeals court has ruled that most of Donald Trump's global tariffs are illegal, marking a significant setback for his trade policy. The court determined that the law Trump used does not authorize him to impose such tariffs, asserting that tariff powers reside exclusively with Congress. Although the ruling temporarily pauses its effectiveness until October 14 for potential Supreme Court intervention, Trump's administration remains firm on the validity of his imposed tariffs. This ruling emerges from ongoing legal challenges against Trump's use of the International Emergency Economic Powers Act (IEEPA) to enforce broad tariffs, which the plaintiffs argue harm American businesses.
📌 Key Facts
- Court Ruling: The U.S. Court of Appeals for the Federal Circuit ruled in a 7-4 decision that most of Trump's tariffs exceed his authority under the International Emergency Economic Powers Act (IEEPA). This ruling reinforces that tariff powers are a Congressional responsibility as per the Constitution.
- Impact on Trade Policy: The ruling is seen as a critical blow to Trump's aggressive trade policies, which relied on expansive tariffs to address perceived national emergencies. Legal representatives for the plaintiffs argue that these unlawful tariffs threaten American businesses and create market uncertainty.
- Next Steps for Trump Administration: The appellate court has paused its ruling from taking effect until October 14, allowing the Trump administration the chance to appeal to the Supreme Court. Trump labeled the court as 'highly partisan' and expressed confidence in a favorable outcome from the Supreme Court.
- Background of Legal Challenge: The ruling stems from V.O.S. Selections v. Trump, a case consolidated from lawsuits by states and businesses disputing Trump's use of IEEPA for broad tariff imposition, which has faced multiple judicial challenges.
- Potential Economic Consequences: Commerce Secretary Howard Lutnick warned that overturning the tariffs could lead to significant harm to U.S. interests, likely resulting in retaliation from foreign trading partners and destabilizing ongoing trade negotiations.
📂 Article Classification
Topic Tags: Trump's Trade Tariffs
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