US Court of Appeals Rules Trump’s Tariffs Illegal: Key Details and Implications
On Friday, August 29, the Federal Court of Appeals in the United States declared most of the tariffs imposed by former President Donald Trump to be unlawful.
This ruling marks a significant development in the ongoing legal battles over the legitimacy of these tariffs and signals a new front in the trade disputes between the US and other nations.
The court found that the tariffs, often used as economic leverage, exceed the constitutional powers granted to the president, as authority over taxation and tariffs resides solely in Congress.
According to the court’s statement, tariffs are a core congressional power and any imposition must adhere to legislative procedures.However, the court suspended its decision until October 14 to allow the Trump administration to appeal to the Supreme Court.
Trump responded by stating that all tariffs remain in effect, criticizing the court’s decision as ‘incorrect’ and influenced by political bias.
He warned that if the tariffs are ultimately removed, it would spell disaster for the country.
Preceding this ruling, in late July, Trump and the European Commission’s head signed a framework trade agreement, which introduces a 15% duty on all goods imported from the EU, including cars and wine.
Trump hailed this as the ‘largest trade deal ever made.’ Meanwhile, the US economy showed signs of strain, with Germany experiencing a 0.3% economic contraction in August due to slowed exports resulting from US tariffs.
Additionally, on August 21, the EU announced it had secured partial relief, successfully negotiating the suspension of tariffs on certain products such as aircraft, aircraft parts, and generic pharmaceuticals, restoring some stability to transatlantic trade relations.