A divided US appeals court has ruled that most of former President Trump’s tariffs are illegal. The court’s 7-4 decision challenges a major part of Trump’s economic policy.
The ruling found that Trump exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) to impose tariffs. While the law allows presidents to act during national emergencies, it does not clearly permit tariffs or taxes.
The decision affects Trump’s “reciprocal tariffs” introduced in April, and additional tariffs placed in February on China, Canada, and Mexico. However, tariffs on steel and aluminum, issued under other laws, are not impacted.
Trump responded by calling the ruling partisan. On his social media platform, Truth Social, he warned that removing tariffs would harm the US economy. He also expressed confidence that the Supreme Court would reverse the decision.
Trump had declared a national emergency to justify his tariffs, citing trade deficits, loss of US manufacturing, and illegal fentanyl imports. His Justice Department argued that the emergency powers gave him authority to regulate imports.
The ruling adds uncertainty to markets already sensitive to trade issues. Some experts believe the administration might try to use other laws to maintain the tariffs.
Art Hogan, chief market strategist at B. Riley Wealth, said businesses need certainty amid ongoing trade conflicts.
This case is part of a larger legal battle over Trump’s economic policies. The Supreme Court, with its conservative majority, is expected to make the final decision.
The court allowed the tariffs to remain in place until October 14 to allow time for appeals. This legal fight could redefine presidential powers on trade and influence US economic policy for years.
In other related news also read Ukraine Left Out as Trump-Putin Summit Nears
