Court Rules Against Trump's Tariffs, but With a Catch

A federal appeals court ruled Friday that President Trump had no legal right to impose sweeping tariffs on almost every country on Earth but left in place for now his effort to build a protectionist wall around the American economy. The ruling from the US Court of Appeals for the Federal Circuit found Trump overstepped his authority under an emergency powers law, a major legal blow that largely upheld a May decision by a specialized New York federal trade court, per the AP. "It seems unlikely that Congress intended to ... grant the president unlimited authority to impose tariffs," the judges wrote in a 7-4 ruling. But they didn't strike down the tariffs immediately, allowing his administration until mid-October to appeal to the Supreme Court.

The president vowed to do that. "If allowed to stand, this Decision would literally destroy the United States of America," Trump wrote online. A White House spokesman, meanwhile, said Trump had acted lawfully, and that "we look forward to ultimate victory on this matter." An attorney for small businesses affected by the tariffs said the ruling shows Trump doesn't have unlimited power to impose tariffs on his own. "This decision protects American businesses and consumers from the uncertainty and harm caused by these unlawful tariffs," said Jeffrey Schwab of the Liberty Justice Center.

The ruling complicates Trump's ambitions to upend decades of American trade policy on his own. His tariffs—and the erratic way he's rolled them out—have shaken global markets, alienated US trading partners, and raised fears of higher prices and slower economic growth. But he's also used the levies to pressure the EU, Japan, and other nations into accepting one-sided trade deals, and to bring tens of billions of dollars into the Treasury to help pay for the massive tax cuts he signed into law July 4.

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The court's decision involves two sets of import taxes, both of which Trump justified by declaring a national emergency under the 1977 International Emergency Economic Powers Act. It remains unclear whether businesses will see any effects from the court's decision, per National Foreign Trade Council President Jake Colvin. "If these tariffs are ultimately struck down, it ought to serve as a wake-up call for Congress to reclaim its constitutional mandate to regulate duties and bring some long-term certainty for US businesses and relief for consumers," Colvin said. More here.