{"id":91981,"date":"2025-08-29T22:19:17","date_gmt":"2025-08-29T22:19:17","guid":{"rendered":"https:\/\/sotnews.agency\/?p=91981"},"modified":"2025-08-29T22:19:17","modified_gmt":"2025-08-29T22:19:17","slug":"most-trump-tariffs-are-not-legal-us-appeals-court-rules","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=91981","title":{"rendered":"Most Trump tariffs are not legal, US appeals court rules"},"content":{"rendered":"
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A divided U.S. appeals court ruled on Friday that most of Donald Trump\u2019s tariffs are illegal, undercutting the Republican president\u2019s use of the levies as a key international economic policy tool.<\/p>\n

The court allowed the tariffs to remain in place through October 14 to give the Trump administration a chance to file an appeal with the U.S. Supreme Court.<\/p>\n

Trump has made tariffs a pillar of U.S. foreign policy in his second term, using them to exert political pressure and renegotiate trade deals with countries that export goods to the United States.<\/p>\n

The tariffs have given the Trump administration leverage to extract economic concessions from trading partners but have also increased volatility in financial markets.<\/p>\n

\u201cThe 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,\u201d the court said.<\/p>\n

The Treasury, the U.S. Trade Representative\u2019s office and the Commerce Department had no immediate response to the ruling.<\/p>\n

The 7-4 decision from the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., addressed the legality of what Trump calls \u201creciprocal\u201d tariffs imposed as part of his trade war in April, as well as a separate set of tariffs imposed in February against China, Canada and Mexico.<\/p>\n

Democratic presidents appointed six judges in the majority and two judges who dissented, while Republican presidents appointed one judge in the majority and two dissenters.<\/p>\n

The court\u2019s decision does not impact tariffs issued under other legal authority, such as Trump\u2019s tariffs on steel and aluminium imports.<\/p>\n

Trump justified both sets of tariffs \u2013 as well as more recent tariffs \u2013 under the International Emergency Economic Powers Act. IEEPA gives the president the power to address \u201cunusual and extraordinary\u201d threats during national emergencies.<\/p>\n

\u201cIt seems unlikely that Congress intended, in enacting IEEPA, to depart from its past practice and grant the President unlimited authority to impose tariffs,\u201d the ruling said. \u201cThe statute neither mentions tariffs (or any of its synonyms) nor has procedural safeguards that contain clear limits on the President\u2019s power to impose tariffs.\u201d<\/p>\n

The 1977 law had historically been used for imposing sanctions on enemies or freezing their assets. Trump, the first president to use IEEPA to impose tariffs, says the measures were justified given trade imbalances, declining U.S. manufacturing power and the cross-border flow of drugs.<\/p>\n

Trump\u2019s Department of Justice has argued that the law allows tariffs under emergency provisions that authorise a president to \u201cregulate\u201d imports or block them completely.<\/p>\n

Trump declared a national emergency in April over the fact that the U.S. imports more than it exports, as the nation has done for decades. Trump said the persistent trade deficit was undermining U.S. manufacturing capability and military readiness.<\/p>\n

Trump said the February tariffs against China, Canada and Mexico were appropriate because those countries were not doing enough to stop illegal fentanyl from crossing U.S. borders, an assertion the countries have denied.<\/p>\n

There was little reaction to the ruling in after-hours stock trading.<\/p>\n

\u201cCompanies will probably continue to operate as though the tariffs will stay in effect since the court is letting the levies stay in place for now,\u201d said Brian Jacobsen, chief economist at Annexe Wealth Management. <\/p>\n

He said the Trump administration will probably resort to other powers to impose temporary tariffs.<\/p>\n

The appeals court ruled on two cases, one brought by five small U.S. businesses and the other by 12 Democratic-led U.S. states, which argued that IEEPA does not authorise tariffs.<\/p>\n

The Constitution grants Congress, not the president, the authority to impose taxes and tariffs, and any delegation of that authority must be both explicit and limited, according to the lawsuits.<\/p>\n

The New York-based U.S. Court of International Trade ruled against Trump\u2019s tariff policies on May 28, saying the president had exceeded his authority when he imposed both sets of challenged tariffs. The three-judge panel included a judge who was appointed by Trump in his first term.<\/p>\n

Another court in Washington ruled that IEEPA does not authorise Trump\u2019s tariffs, and the government has appealed that decision as well. <\/p>\n

At least eight lawsuits have challenged Trump\u2019s tariff policies, including one filed by the state of California.<\/p>\n<\/div>\n

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