A federal appeals court has ruled that most of the tariffs imposed by US President Donald Trump are unlawful, putting his trade policy in jeopardy. The US Court of Appeals for the Federal Circuit declared that Trump misused his authority by imposing tariffs under an emergency-powers statute, stating that only Congress can authorize such measures.
The tariffs, which range from 10% to 41%, were launched in April and took effect on August 7. They were imposed on most US trade partners, with the aim of addressing perceived unfair trade imbalances and securing better trade terms. However, the policy has drawn criticism from US lawmakers, who argue that it could damage the economy.
The court ruling covers two sets of tariffs: broad “reciprocal” tariffs on most US trade partners, and tariffs on goods from Canada, China, and Mexico linked to drug trafficking claims. The decision does not affect targeted tariffs, such as those on foreign steel, aluminum, and autos, as they were enacted under separate laws.
Trump has argued that tariffs are beneficial for the economy, presenting them as tools to secure better trade terms, revive manufacturing, and cut deficits. However, economists warn that the policy risks pushing the US into recession. The president has warned that if the tariffs are scrapped, the US could become a “third world nation” and lose out on significant investment.
The court has given the administration until mid-October to appeal the decision to the Supreme Court. If the ruling stands, it could have significant implications for US trade policy and the economy. The US has already imposed tariffs on several countries, including India, which had its tariffs doubled to 50% last month. Russia has not been targeted with tariffs due to existing sanctions, but Trump has threatened higher tariffs on its trade partners if the Ukraine conflict is not resolved.
The ruling is a significant setback for Trump’s trade policy, which has been a key aspect of his presidency. The outcome of the appeal is likely to have far-reaching consequences for the US economy and its trade relationships with other countries. As the situation develops, it remains to be seen how the administration will respond to the court’s decision and what impact it will have on the US economy.
