Trump’s Tariffs Face Legal Challenge
A federal appeals court has recently ruled that a significant portion of Donald Trump’s tariffs is an overreach of his presidential authority, a decision that has a lot of people talking. These so-called “reciprocal tariffs,” which were imposed on almost every country the US trades with, were deemed to be illegally imposed.
This decision maintains a prior Court of International Trade ruling. The tariffs weren’t immediately lifted, but they were only supposed to last until the middle of October, which created the conditions for a likely legal dispute before the US Supreme Court.
What happens next?
The Justice Department would appeal the decision to the Supreme Court, according to U.S. Attorney General Pam Bondi, who deemed the court’s decision incorrect. The Trump administration has other options to impose the tariffs, such as using the 1974 Trade Act, if the high court ultimately decides to revoke them.
That law, however, restricts tariffs to 15 percent and to just 150 days. In addition, a lower court will reconsider whether the government should refund tariffs to all companies that already paid them, or only to those parties that filed a lawsuit against the government.
Which tariffs does the court ruling affect?
The ruling specifically targets the tariffs that were imposed through executive orders between February and April. The “trafficking tariffs” imposed on Canada, Mexico, and China, as well as the “reciprocal tariffs” announced on “Liberation Day,” were justified by Trump as being required to halt the flow of illegal drugs and undocumented immigrants into the United States. Furthermore, it should be noted that the decision does not apply to copper, aluminum, or steel tariffs because those were imposed for different reasons.
Why did the court rule that the tariffs are illegal?
The court determined that Trump overstepped his authority when using the International Emergency Economic Powers Act (IEEPA) to impose most of his tariffs. The IEEPA is an emergency law that is usually used to impose economic sanctions.
However, the court stated that the law “does not explicitly include the power to impose tariffs, duties, or the like, or the power to tax.” According to the court, the power of the purse belongs to Congress, and it was ruled that it seems unlikely that Congress intended to grant the President unlimited authority to impose tariffs in the absence of explicit language in the IEEPA.
How has Trump responded to the ruling?
In a post on social media, Trump called the court a “Highly Partisan Appeals Court” and said that “ALL TARIFFS ARE STILL IN EFFECT!” He furthermore stated that if the tariffs were ever taken away, it would be a “total disaster for the Country.” He also reaffirmed his belief that tariffs are the “best tool to help our Workers, and support Companies that produce great MADE IN AMERICA products.”
What trade deals has the Trump administration signed?
The Trump administration has signed trade agreements with South Korea, Japan, the European Union, and the United Kingdom since the tariffs were proposed. In the meantime, talks with China and Mexico are ongoing. Steeper levies were also introduced on imports from India, Switzerland, and Canada earlier in August.
Conclusion
A legal and political showdown is now looming. A key Trump administration policy has suffered a serious setback as a result of the appeals court’s decision. His administration’s choice to file an appeal with the Supreme Court, however, indicates that this matter is far from resolved. The ultimate decision will establish the future extent of presidential authority in trade and foreign policy issues, in addition to deciding whether these particular tariffs are lawful.
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