Trump Tariffs Deemed Unlawful by Federal Appeals Court

(MENAFN) A federal appeals court ruled Friday that most of U.S. President Donald Trump's global tariffs were illegally imposed, finding he exceeded his legal powers, media reported. Despite the ruling, the levies remain in place for now as the case heads back to a lower court for further review.

The U.S. Court of Appeals for the Federal Circuit upheld a prior decision by the Court of International Trade, which found Trump misused emergency powers under the International Emergency Economic Powers Act (IEEPA) to justify the tariffs. However, appellate judges instructed the lower court to determine whether the decision affects only the plaintiffs or all parties impacted by the tariffs.

The case introduces continued uncertainty around the future of Trump’s signature trade measures, which significantly altered U.S. economic ties globally. A final decision could ultimately rest with the U.S. Supreme Court.

"Trump is all but certain to appeal the ruling to the Supreme Court. The appellate court paused its ruling from taking effect until Oct. 14, in order to give the Trump administration time to ask the Supreme Court to take up the case," media reported.

According to media, Trump’s legal team argued the IEEPA grants the president broad authority to impose country-specific tariffs if deemed essential during a national emergency. However, a federal trade court rejected that interpretation in May, striking down the IEEPA-based tariffs, including a set of global “reciprocal” tariffs announced in early April. The appellate court temporarily blocked that ruling during the appeal process.

Media noted that "the decision undercuts the centerpiece of his aggressive trade policy, which reshaped U.S. economic relations with much of the world."

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