US Appeals Court Rules Against Trump's Reciprocal Tariffs

Brisbane, Sep 2 (The Conversation) Trading partners of the United States are now grappling with a fresh wave of uncertainty following a ruling from a US federal appeals court, which deemed President Donald Trump’s “reciprocal” tariffs as illegal. In a 7-4 decision, the judges concluded that Trump exceeded his powers by using emergency powers to impose indefinite tariffs on almost all goods from nearly every country. This decision upholds an earlier court ruling and could disrupt strategies for trading partners still in negotiations with the US, likely causing them to adopt a wait-and-see approach regarding the legal proceedings.

The next step is the Supreme Court, according to Trump. The US Court of Appeals for the Federal Circuit allowed the tariffs to remain in effect until October 14 to permit further appeals. The ruling has also highlighted the testing of executive powers under the 1977 International Emergency Economic Powers Act (IEEPA). Trump’s use of this act to levy tariffs has raised questions about executive authority. For now, it appears the administration has overstepped, as the judges emphasized that taxation powers reside with Congress, invoking Article 1, Section 8, of the US Constitution. The judges highlighted that allowing such power to the President could effectively diminish Congressional control over taxation.