A divided U.S. appeals court ruled on Friday that most of Donald Trump’s tariffs are illegal, undercutting the Republican president’s use of the levies as a key international economic policy tool. The court allowed the tariffs to remain in place through Oct. 14 to give the Trump administration a chance to file an appeal with the U.S. Supreme Court.
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 “reciprocal” 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. The court’s decision does not impact tariffs issued under other legal authority, such as Trump’s tariffs on steel and aluminum imports.
Trump justified both sets of tariffs -- as well as more recent levies - under the International Emergency Economic Powers Act (IEEPA). IEEPA gives the president the power to address “unusual and extraordinary” threats during national emergencies. 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.
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.
“The 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,” the court said. “It seems unlikely that Congress intended, in enacting IEEPA, to depart from its past practice and grant the President unlimited authority to impose tariffs.”
The preceding summary derives from the following CTV News article: Trump tariffs: U.S. appeals court rules most are illegal