Appeals Court Rules Trump’s Sweeping Global Tariffs Are Illegal
The U.S. Court of Appeals for the Federal Circuit has upheld a lower court’s ruling that the law President Donald Trump has been using to enact his widespread tariff policy does not actually grant him that power, setting up a final appeal to the Supreme Court.
In an opinion published Friday afternoon, the Federal court ruled 7-4 that the law President Trump has been using, which is the International Emergency Economics Powers Act, does not grant him the power to enact tariffs and that this is strictly a power granted to Congress.
“The core Congressional power to impose taxes such as tariffs is vested exclusively in the legislative branch by the Constitution. Tariffs are a core Congressional power,” the court writes.
The Court has paused its ruling, which would remove the tariffs that have been enacted outside of Congress, until October 14 to allow the Trump administration to appeal the decision to the Supreme Court, which it will surely do. So, as of now, his tariffs are still in effect.
“Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end. If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak, and we have to be strong. The U.S.A. will no longer tolerate enormous Trade Deficits and unfair Tariffs and Non Tariff Trade Barriers imposed by other Countries, friend or foe, that undermine our Manufacturers, Farmers, and everyone else,” Donald Trump writes on Truth Social.
It is important to remember that a tariff is paid by the importer and passed on to the consumer. Tariffs, despite what the president has claimed in the past, are not paid by the country of origin for a product.
“If allowed to stand, this Decision would literally destroy the United States of America. At the start of this Labor Day weekend, we should all remember that TARIFFS are the best tool to help our Workers, and support Companies that produce great MADE IN AMERICA products,” he continues; emphasis, spelling, and capitalization are his.
This statement, despite the fact that his tariffs are broad and sweeping and cover products for which there is no infrastructure to be made in America, such as cameras. The photography industry has seen steeply increased prices for cameras, lenses, and accessories. No camera company has expressed any plans to move any level of manufacturing to the United States.
“Both the Trafficking Tariffs and the Reciprocal Tariffs are unbounded in scope, amount, and duration,” the majority of judges in the ruling found, CNBC reports, echoing the sentiment that his tariffs are not strategic enough to result in U.S.-based manufacturing.
“These tariffs apply to nearly all articles imported into the United States (and, in the case of the Reciprocal Tariffs, apply to almost all countries), impose high rates which are ever-changing and exceed those set out in the [U.S. tariff system], and are not limited in duration.”
The full ruling can be read here.
Image credits: Header photo licensed via Depositphotos.