Femi Ashekun/
A US appeals court has ruled that many of the tariffs imposed by Donald Trump’s presidency were unlawful, but decided to keep them in place while the White House challenges the ruling at the Supreme Court.
In a 7-4 decision on Friday, the Federal Circuit Court of Appeals agreed with a lower court that Trump went beyond his powers by using emergency economic laws to introduce sweeping tariffs without approval from Congress.
Judges said there was no clear authority in law that allowed Trump to justify tariffs on countries such as China and Canada using reasons like drug trafficking across US borders.
The ruling strikes at one of Trump’s most important economic policies.
The tariffs have been a major source of government revenue, bringing in hundreds of billions of dollars, while also shaping America’s trade negotiations with countries that wanted relief from the extra charges.
If the Supreme Court eventually strikes them down, it could unravel several trade agreements and leave a large gap in revenue that helped balance Trump’s tax cuts.
The case was originally brought by a group of American businesses, including wine importer VOS Selections, which argued that the tariffs harmed them. They were later joined by 12 states, led by Oregon, which said the tariffs raised the cost of essential goods purchased by public institutions.
In his reaction, Trump wrote on social media that the tariffs remain in place and accused the judges of being “highly partisan.”
He insisted that tariffs are the best way to protect American workers and companies making “Made in America” products. He also warned that if the ruling stands, it would “literally destroy the United States of America.”
The White House confirmed it would appeal to the Supreme Court. A spokesman said Trump acted lawfully and that the tariffs were necessary to defend the country’s economic and national security.
Commerce Secretary, Howard Lutnick, also argued that striking down the tariffs could damage US foreign policy, lead to retaliation from other countries, and derail ongoing trade talks.
Democrats welcomed the court’s ruling. Senator Ron Wyden of Oregon said federal judges had once again shown that Trump’s broad use of tariffs was illegal.
Neal Katyal, the lawyer who argued the case for the businesses, said his team was pleased the appeals court firmly rejected Trump’s attempt to impose tariffs across the globe “with the stroke of a pen.”
For now, the tariffs remain in effect until at least October 14, giving the White House time to seek a Supreme Court review.
0
