In a major legal setback, a U.S. Appeals Court has ruled that most of President Donald Trump’s global tariffs are illegal, declaring that they were imposed without proper legal authority. The U.S. Court of Appeals for the Federal Circuit concluded that the Trump administration overstepped its power by using the International Emergency Economic Powers Act (IEEPA) to enforce tariffs on countries like China, Mexico, and Canada.
Key Ruling: Impact on U.S. Trade Policy and Global Economy
The 7-4 ruling challenges the way Trump tariffs were implemented, which have been a central point in the U.S.-China trade war and broader global trade relations. The court found that the IEEPA, which is typically used to implement sanctions, does not authorize the president to impose wide-reaching import taxes on goods from other nations.
Despite this ruling, the court allowed the tariffs to remain in effect until October 14, giving the Trump administration time to appeal the decision to the U.S. Supreme Court. President Trump quickly criticized the ruling on social media, calling it a “total disaster” and pledging to take it further to the highest court.
What’s at Stake: The Future of U.S. Trade Relations
If the U.S. Supreme Court upholds the appeals court ruling, it could redefine presidential power in setting trade policy and impact ongoing trade negotiations. The ruling has major implications for U.S.-China trade relations, global tariffs, and the future of international trade agreements. The global economy could feel the effects, particularly in sectors that have been directly impacted by the Trump administration’s tariffs, such as manufacturing, technology, and agriculture.
How Will the U.S. Trade Landscape Change?
Presidential Power and Trade Law: The case raises questions about the limits of presidential authority in shaping trade policy and how future administrations can use or modify trade tools like tariffs.
China Tariffs: The U.S. has imposed billions in tariffs on Chinese goods, which have affected consumer prices and supply chains. This ruling could impact future trade talks with China.
NAFTA and USMCA: The tariffs also impacted trade with Mexico and Canada under the USMCA (formerly NAFTA). The ruling could influence future trade negotiations in North America.