Federal Appeals Court Rules Most Trump-Era Tariffs Illegal, but Stays Decision Pending Appeal

The US Court of Appeals for the Federal Circuit delivered a significant ruling on Friday, declaring that a majority of the global tariffs imposed during Donald Trump's presidency are illegal. This decision upholds a previous ruling from late May that criticized the tariffs as an overreach of presidential authority. The court ruled by a margin of seven votes to four, determining that Congress did not grant the president wide-ranging power to impose tariffs under the International Emergency Economic Powers Act (IEEPA), which was the legislation employed by Trump to enact these measures. However, the court's ruling has a critical stipulation: the tariffs will remain in effect until October 14, allowing the US government to file an appeal. The court stated, "Because we agree that the grant of presidential authority by the IEEPA to regulate imports does not authorize the tariffs imposed by executive orders, we must act accordingly." US Attorney General Pam Bondi quickly responded to the ruling, announcing plans for the Justice Department to appeal. "The decision is incorrect," she stated via X, emphasizing that the Justice Department intends to fight to restore what it deems the legitimate authority of the president. Meanwhile, Trump took to his Truth Social platform to express his outrage over the court's decision, asserting that it was flawed and warning of dire consequences should the tariffs be lifted. He stated, "If these tariffs were to disappear, it would be a total disaster for the country." Trump reiterated his belief that these tariffs, particularly those imposed on China, Mexico, and Canada, are vital for protecting American jobs and industries. Within the court's ruling, the judges specifically noted that five executive orders tied to the IEEPA could potentially be revoked, including tariffs introduced on what Trump called 'Liberation Day' on April 2. Other tariffs, such as the 25% levies on cars, steel, and aluminum, would remain intact, as they are governed by the Trade Expansion Act. This ruling underscores a broader limitation on presidential power concerning tariff imposition, grounding authority firmly within Congress as outlined by the US Constitution. The judges expressed skepticism regarding Congress's intent when enacting the IEEPA, stating that it is unlikely they aimed to grant the president unlimited tariff powers. In a recent statement, Trump framed this legal battle as essential for America's economic strength, declaring, "We will make America rich, strong, and powerful again." He contended that previous administrations had failed to defend the nation against unfair trade practices and insisted that the current tariffs are a necessary measure to protect American manufacturers and consumers alike. As this complex legal situation evolves, both the Justice Department's appeal and Trump's attempts to uphold the tariffs will play crucial roles in shaping US trade policy moving forward. Related Sources: • Source 1 • Source 2