U.S. court rules Donald Trump's global tariffs illegal; Trump vows Supreme Court appeal, calls decision an economic "disaster"

U.S. court rules Donald Trump's global tariffs illegal; Trump vows Supreme Court appeal, calls decision an economic "disaster"

A federal appeals court has ruled that many of U.S. President Donald Trump's tariffs are illegal, undercutting his use of the levies as a key international economic policy tool. The U.S. Court of Appeals for the Federal Circuit, in a 7-4 decision, found that Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) to impose tariffs. The court allowed the tariffs to remain in place temporarily while the Trump administration prepares to appeal the decision to the U.S. Supreme Court.

Trump, who has long justified his tariffs as a means to address trade imbalances and national security threats, was quick to respond to the ruling. He called the decision an "economic disaster" and predicted that the Supreme Court would ultimately reverse the ruling. The president's White House spokesperson, Kush Desai, stated that the president's tariffs remain in effect and that the administration looks forward to a favorable outcome in the Supreme Court.

The court's decision stems from two cases brought by businesses and states arguing that IEEPA does not authorize tariffs. The court ruled that the statute, which was enacted to address "unusual and extraordinary" threats during national emergencies, does not explicitly grant the president the power to impose tariffs. The court noted that the Constitution grants Congress, not the president, the authority to issue taxes and tariffs.

The ruling has significant implications for Trump's trade policy and the broader global economy. It challenges the administration's use of tariffs to exert political pressure and renegotiate trade deals. The decision also adds uncertainty to the financial markets, which have been volatile due to Trump's trade policies.

The Trump administration has been preparing for this ruling and is expected to use other legal authorities to keep the tariffs in place. At least eight lawsuits have challenged Trump's tariff policies, including one filed by the state of California.

The court's decision does not impact tariffs issued under other legal authorities, such as Trump's tariffs on steel and aluminum imports. These tariffs were enacted under the Trade Expansion Act of 1962 and are not subject to the current ruling.

The ruling comes as the Trump administration is also locked in a legal battle to remove Federal Reserve Governor Lisa Cook, potentially ending the central bank's independence. The Supreme Court's involvement in this case could set up an unprecedented legal showdown over Trump's entire economic policy.

Reference List:
[1] https://www.cbc.ca/news/world/appeals-court-trump-tariffs-unconstitutional-1.7621773
[2] https://www.aol.com/news/most-trump-tariffs-not-legal-213525124.html