Donald Trump His tariff policy suffered its biggest failure so far on Friday because Federal Court of Appeals Rule He goes out of his way when he takes punitive financial measures against almost every country in the world.
In the 7-4 ruling Washington, DC The court said that while U.S. law “gives the president important powers to many lawsuits declared as national emergency,” none of these actions allowed tariffs or taxes.
This means the final ruling on the legitimacy of Trump’s tariffs, which is famous Based on false economic science When he declares the global economy in April, it may be made by the U.S. Supreme Court.
This is something to know.
What tariffs have the court reduced?
The decision centered on the tariffs introduced by Trump on April 2, which is what he calls “liberation day.” The tariffs set a 10% benchmark for almost all trading partners of the United States and the so-called “countdown” tariffs, which he believes were treated unfairly. Lesotho is a country with 2.3 million people in southern Africa 50% tariffand Trump also announced tariffs on a group of uninhabited islands at 10% By penguin groups.
The ruling left all these tariffs at a loss, and the judge found that the president’s measures “unbounded in scope, quantity and duration”. They said the tariffs “aggressively advocated broad authority on the clear limitations of the laws his government used to pass.”
Tariffs usually require approval from Congress, but Trump claims that under the International Emergency Economic Powers Act (IEEPA), he has the right to impose tariffs on trading partners, which in some cases grants the president the power to authorize norms or bans international transactions in national emergencies.
The court ruled: “It is unlikely that Congress will leave its past practices when it enacted Ieepa and grant the president unlimited power to impose tariffs.”
Trump cited the same law in February to impose tariffs on Canada, Mexico and China, claiming Mobility of undocumented immigrants and Drugs across the U.S. border It’s equivalent to a national emergency, and the three countries need to do more to stop it.
Are the tariffs gone now?
no. The court maintains to a large extent May’s decision The Federal Trade Court in New York ruled that Trump’s tariffs were illegal. But Friday’s ruling abandoned a portion of the ruling, which would immediately reduce tariffs.
The court said the ruling would not take effect until October 14. That allows Trump administration It is time to call on a majority of the conservative U.S. Supreme Court that will have the ultimate say in whether Trump has legal rights (the president) to subvert U.S. trade policy.
What does this mean for Trump’s trade agenda?
The administration argues that if Trump’s tariffs are approved, it may have to refund some of the import taxes it collects, which would have a financial blow to the U.S. Treasury Department.
By July, the total revenue from tariffs was $159 billion, more than double the same time last year. The Justice Department warned in a legal filing this month that the removal of tariffs could mean “financial destruction” in the United States.
The ruling could also put Trump in a shaky attitude when trying to impose tariffs. The president does have alternative laws to replace import tariffs, but they will limit the speed and severity he can take.
In a May ruling, the Trade Court said that under another regulation, the Trade Act of 1974, Trump has higher powers to tackle tariffs on the trade deficit. However, the law limits tariffs to 15%, while only 150 days are available in countries operating a large trade deficit in the United States.
How Trump responds
He was unhappy. Trump spent dozens of social media posts Friday night, which criticized the court’s ruling. exist Posts Trump claimed on his social media website that he tended to do so when the judge defended him, and the decision was made by a “highly partisan court of appeals.”
“If these tariffs go away, it will be a disaster for the country,” Trump wrote, adding: “If standing is allowed, this decision will actually undermine the United States of America.”
Trump claims that “tariffs are the best tool to help our workers”, although their costs are usually borne by everyday Americans. Tariffs have sparked economic and political uncertainty around the world and have caused fear of rising inflation.
Health & Wellness Contributor
A wellness enthusiast and certified nutrition advisor, Meera covers everything from healthy living tips to medical breakthroughs. Her articles aim to inform and inspire readers to live better every day.
