A divided U.S. appeals court has ruled that the majority of former President Donald Trump’s tariffs are illegal, striking a major blow to one of the central pillars of his economic and trade policies.
The court allowed the tariffs to remain in place until October 14, giving the Trump administration time to appeal the decision to the U.S. Supreme Court. This sets up what could become an unprecedented legal battle over the limits of presidential authority in shaping trade and economic policy.
Why the Court Ruled Against Trump’s Tariffs
Trump had imposed these tariffs under the International Emergency Economic Powers Act (IEEPA), a 1977 law designed to let presidents respond to “unusual and extraordinary threats” during national emergencies. Historically, IEEPA has been used to impose sanctions or freeze foreign assets, not to levy tariffs.
The appeals court found that IEEPA does not explicitly give presidents the power to impose tariffs, noting that such powers rest with Congress. The ruling highlighted that expanding IEEPA in this way would effectively give presidents unlimited authority over trade, something Congress has never intended.
What This Means for Trump’s Trade Strategy
Trump has relied heavily on tariffs as a foreign policy tool during his second term, using them to pressure countries like China, Canada, and Mexico and renegotiate trade deals. Supporters argue this gave the U.S. leverage, while critics say it triggered market volatility and strained global trade relations.
Despite the setback, Trump remains confident, calling the ruling partisan and predicting that the Supreme Court will ultimately side with him.
Broader Implications
This case comes at the same time Trump is fighting another major legal battle his attempt to remove Federal Reserve Governor Lisa Cook, which could challenge the Fed’s independence. Experts warn that together, these disputes could put Trump’s entire economic agenda on a “collision course” with the Supreme Court.
If the Court sides against Trump, it could not only roll back key tariffs but also set strict limits on presidential power in trade policy. If the Court sides with him, it could dramatically expand presidential authority over the economy.
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