US Appeals Court Deals Massive Jolt To Trump’s Tariff Tango, Rules Most Levies Imposed Are 'Illegal'

New York: President Donald Trump's tariff policies have been dealt a massive blow by a US Appeals Court, ruling that most of the levies imposed during his tenure are illegal. The decision is expected to have vast implications for Trump's international economic policy tool, which has been a cornerstone of his administration's approach to global trade.

The US court's ruling centred on the International Emergency Economic Powers Act (IEEPA), which granted the president authority to address unusual and extraordinary threats during national emergencies. During the hearing, it reportedly came to the fore that Trump invoked IEEPA to impose tariffs on countries deemed to be engaging in unfair trade practices or threatening US economic interests. However, the court found that the statute does not explicitly grant the president the power to impose tariffs, duties, or taxes.

US Court's Scathing Rebuke Of Donald Trump's Policy

The US judges' decision was unequivocal, noting, "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's ruling has shed light on the limits of executive power and the need for clear legislative authorisation for such actions.

Trump's tariffs have been a focused component of his trade policy, which is aimed at renegotiating trade deals and exerting pressure on trading partners. The levies have given the administration leverage to extract economic concessions, but they have also increased volatility in financial markets. Amidst Donald Trump's attempts to push a trade war across the globe, the court's decision has cast a shadow over the legitimacy of these tariffs, undermining their effectiveness.

'Tariffs Still In Effect', Says Trump

Donald Trump was quick to respond, deeming the US Appeals Court’s ruling as “incorrect” and affirming that the tariffs were still in effect. 

In a post on Social Truth, Trump said, “ALL TARIFFS ARE STILL IN EFFECT! Today, a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end. If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak, and we have to be strong. The U.S.A. will no longer tolerate enormous Trade Deficits and unfair Tariffs and Non Tariff Trade Barriers imposed by other Countries, friend or foe, that undermine our Manufacturers, Farmers, and everyone else. If allowed to stand, this Decision would literally destroy the United States of America. At the start of this Labor Day weekend, we should all remember that TARIFFS are the best tool to help our Workers and support Companies that produce great MADE IN AMERICA products. For many years, Tariffs were allowed to be used against us by our uncaring and unwise Politicians. Now, with the help of the United States Supreme Court, we will use them to the benefit of our Nation, and Make America Rich, Strong, and Powerful Again! Thank you for your attention to this matter.”

Big Blow To Trump's Executive Power

The court's ruling is a massive setback for US President Trump's executive authority, as it challenges his ability to unilaterally impose tariffs without congressional approval. The Constitution granted Congress the authority to impose taxes and tariffs, and any delegation of that authority must be both explicit and limited. The court doubted Trump's use of IEEPA to justify tariffs, which have consistently ruled that the president's authority is not unlimited.

After the US Appeals Court ruling, the case is likely to be appealed to the US Supreme Court, which will eventually decide the fate of Trump's tariff policies. The court's decision will have a massive impact on the future of international trade and the limits of executive power. 

Further details regarding the latest development on Trump's tariffs are awaited.