Trump Administration Continues Trade Talks Despite Appeals Court Ruling That Most Tariffs Are Illegal

(MENAFN- Live Mint) The Trump administration said it is continuing trade negotiations with key partners despite a US appeals court ruling that most of President Donald Trump's tariffs were imposed illegally.

US Trade Representative Jamieson Greer said on Sunday that discussions remain on track.“Our trading partners, they continue to work very closely with us on negotiations,” Greer told Fox News.“People are moving forward with their deals, regardless of what this court may say in the interim.”

Court ruling against emergency tariffs

On Friday, the US Court of Appeals for the Federal Circuit ruled 7-4 that Trump overstepped his authority when he invoked national emergencies to justify sweeping tariffs on nearly all trading partners. The decision largely upheld a May judgment by the US Court of International Trade in New York , which found that the President's so-called “Liberation Day” tariffs exceeded powers granted under the 1977 International Emergency Economic Powers Act (IEEPA).

The appeals court , however, allowed the tariffs to remain in place temporarily, giving the administration time to appeal to the Supreme Court.

Trump's tariff strategy under fire

In April, Trump imposed reciprocal tariffs of up to 50% on nations with which the US runs trade deficits, alongside a 10% baseline levy on most others. While some countries, including the UK, Japan and the EU, agreed to revised trade terms, others faced steeper penalties.

Trump justified the sweeping measures by declaring long-standing US trade deficits a national emergency. He had earlier invoked the same law to impose tariffs on Canada, Mexico and China, citing illegal immigration and drug trafficking across US borders as national security threats.

Market uncertainty

The ruling marks a significant setback for Trump , whose unpredictable trade policies have unsettled global markets, rattled businesses, and stoked fears of higher consumer prices.

Economic risks

The Justice Department has warned that overturning the tariffs could force the government to refund billions in collected duties, with $159 billion raised by July - more than double the previous year.

Trump warned that if the decision stands, it would“it would be a total disaster for the Country.”

“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," Trump wrote in the post on Truth Social.

Tariffs not covered by ruling

The appeals court's decision does not affect tariffs imposed on steel, aluminum, autos, or the separate China-specific levies first introduced during Trump's earlier term - which the Biden administration has since maintained.

Also Read | Trump tariffs: Would reciprocal tariffs on US be in India's benefit?

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