Federal Appeals Court Limits Presidential Tariff Powers, Trump Vows Supreme Court Challenge

A recent federal appeals court decision has delivered a significant blow to former President Trump’s expansive use of tariffs, ruling that he overstepped his authority in declaring national emergencies to justify widespread import duties. The U.S. Court of Appeals for the Federal Circuit, in a 7-4 decision this past Friday, largely upheld an earlier May ruling by a federal trade court in New York, which found that Trump’s ‘Liberation Day’ tariffs exceeded presidential powers.

While the appeals court’s ruling rejected the immediate striking down of the tariffs, it grants the administration time to appeal to the U.S. Supreme Court. This represents a major setback for Trump’s trade policy, which aimed to boost the U.S. economy through tariffs. The former president swiftly condemned the decision on Truth Social, labeling the appeals court ‘Highly Partisan’ and asserting that the tariffs remain in effect.

The legal challenge, initiated by Democratic states and small businesses, centers on the tariffs Trump imposed in April and earlier levies on China, Mexico, and Canada. These tariffs were justified under the 1977 International Emergency Economic Powers Act (IEEPA), with Trump citing long-standing U.S. trade deficits as a ‘national emergency.’

This ruling does not impact all of Trump’s tariffs, specifically excluding those on foreign steel, aluminum, and autos imposed under different regulations, as well as tariffs on China from his first term that President Biden has maintained. The Justice Department has warned that revoking the tariffs could lead to significant financial repercussions for the U.S. Treasury, potentially requiring refunds of collected import taxes.

Trump has vowed to take the fight to the Supreme Court, stating, ‘If allowed to stand, this Decision would literally destroy the United States of America.’ Legal experts suggest the administration may explore alternative statutes for imposing import taxes, though these would likely offer less speed and severity compared to the IEEPA.

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