Trump Tariffs Deemed ‘Illegal’ by US Appeals Court; President Vows Fight | Top 5 Points

A divided US Court of Appeals for the Federal Circuit ruled on Friday that most of former President Donald Trump’s tariffs on multiple countries were imposed illegally. However, the court allowed the tariffs to remain in effect until October 14, giving the administration time to appeal to the Supreme Court.

Trump criticized the ruling on Truth Social, calling the decision by a “highly Partisan Appeals Court” incorrect and reaffirmed that all tariffs would remain in place.

Key Takeaways:

1. Earlier Ruling Upheld: The Federal Circuit upheld a prior decision from the Court of International Trade, which found Trump had wrongly invoked the International Emergency Economic Powers Act (IEEPA) to impose tariffs. The case has been sent back to the lower court to clarify whether the ruling applies broadly or only to parties involved in the lawsuit.

2. Trump Lacked Authority: The appeals court confirmed that Trump did not have legal authority to unilaterally impose tariffs under the 1970s-era IEEPA law. While the tariffs are deemed illegal, the decision will not take effect until October 14.

3. Impact on India and Other Countries: The ruling casts uncertainty over the durability of Trump-era tariffs, including a 50% tariff on India and other levies targeting countries with US trade deficits. It remains unclear how this affects ongoing trade talks.

4. Trump’s Reaction: Trump vowed to fight the decision with the Supreme Court, asserting that the US “will win in the end” and accusing the appeals court of being partisan.

5. Next Steps: The case is expected to reach the Supreme Court for a final decision. Alternatively, the administration could ask the Court of International Trade to revisit the matter. The ruling complicates Trump’s efforts to reshape US trade policy unilaterally, as other legal avenues for imposing tariffs are slower and less sweeping.