President Trump announces his global tariffs at a Rose Garden event at the White House on April 2. Chip Somodevilla/Getty Images hide caption
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Chip Somodevilla/Getty Images
An appeals court ruled that most of President Trump’s tariffs are illegal — but held off on enforcing the decision until mid-October, given expectations that it will be appealed to the Supreme Court.
The ruling from the U.S. Court of Appeals for the Federal Circuit, in Washington, D.C., focused on the “reciprocal” tariffs Trump imposed in April, as well as separate tariffs on China, Canada and Mexico that the administration put in place citing emergency powers granted under a 1970s-era law.
The court’s decision does not impact other tariffs, authorized under different authorities, such as taxes on imported steel and aluminum.
The decision is nonetheless a blow for Trump’s tariffs — which have become a defining economy policy of his current term, setting in place the highest import taxes since the 1930s.
Trump acted under emergency powers
The appeals court in Washington ruled that the president had overstepped his authority in invoking the International Emergency Economic Powers Act (IEEPA) to impose most of his tariffs. The act from the 1970s gives the president the power to respond to “unusual and extraordinary” threats at times of national emergencies.
The divided appeals court, which split 7 to 4, said the IEEPA does not give Trump the power to impose such sweeping tariffs.
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“The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax,” the court said.
Opposing Trump’s tariffs
Trump has long touted tariffs — which currently range from 15% on goods from the European Union to 50% on imports from India — as critical to rebalancing a global trade that the president believes works against U.S. interests.
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But the tariffs have raised widespread concerns about the impact on the global economy — and many economists believe the tariffs will end up hurting many U.S. businesses and consumers who will ultimately have to shoulder some of the costs of the tariffs. Already, there are some signs that inflation is rising, though the full effects of the tariffs may not be known for some time.
The tariffs have also faced a number of legal challenges, including one from a dozen states.
The ruling from the Washington court comes just months after the U.S. Court of International Trade declared the tariffs illegal, ruling in May that the president had exceeded his authority.
Trump warned in a social media post Friday night that if the ruling stands, it would “literally destroy the United States of America.” But the White House expressed confidence that the decision would be overturned by the Supreme Court.
