A federal appeals court has ruled that most of US President Donald Trump’s global tariffs were illegal, dealing a major blow to one of the key parts of his
trade policy, as per Reuters report. The ruling came from the US Court of Appeals for the Federal Circuit, which decided that the law Trump used to justify the tariffs, the International Emergency Economic Powers Act (IEEPA), does not actually give him the power to impose them.
Decision Paused Until October 14
The decision is not final yet. The court paused the ruling until October 14, giving the Trump administration time to appeal to the US Supreme Court.
Trump is expected to take the case to the highest court in an attempt to defend his policy.
Trump’s administration has earlier said that IEEPA allows the President to set tariffs on other countries if they are considered necessary to handle a national emergency. Using this interpretation, Trump had introduced “reciprocal” tariffs across the world in April, saying they were needed to balance unfair trade practices.
What Donald Trump Said
US President Donald Trump on Saturday said that tariffs imposed on imports will continue, even after a federal appeals court ruled against them.
In a post on Truth Social, Trump called the ruling “highly partisan” and insisted that the United States will win in the end. He said that removing tariffs would be a “total disaster” for the country, claiming it would harm American manufacturers, farmers, and workers.
Trump said the decision, if upheld, could “literally destroy the United States of America.” He argued that tariffs are necessary to protect the country from unfair trade practices, large deficits, and barriers imposed by other nations.
“ALL TARIFFS ARE STILL IN EFFECT!” Trump wrote, adding that he is confident the Supreme Court will step in to keep them in place. He also criticized past politicians for allowing other countries to take advantage of the US through trade.
Lower Court Already Struck Down Tariffs
But earlier this year, in May, a lower federal trade court rejected Trump’s argument, saying IEEPA cannot be used to impose such broad, global tariffs.
That court also struck down his “reciprocal” tariff plan. However, the appeals court temporarily blocked that decision while Trump appealed.