Court of Appeals Rules Most Trump-Imposed Tariffs as Unlawful
In a recent development, the U.S. Court of Appeals has revoked President Trump's authority to impose wide-ranging tariffs under an emergency law. This decision is another significant blow to Trump's aggressive trade policy.
The court's ruling relates to the country-specific tariffs that Trump first announced in early April, affecting dozens of U.S. trading partners. Trump justifies his aggressive tariff policy using alleged trade deficits as a national security risk, enabling him to bypass Congress.
Since August 7, a 15 percent tariff has been imposed on the import of most EU products into the U.S. However, the appeals court's decision to revoke Trump's authority to impose tariffs under an emergency law is a major setback for the President's trade policy.
The revocation does not take effect until October 14, allowing the U.S. government to challenge it at the Supreme Court. Trump has announced that he will challenge the court's decision at the Supreme Court, reiterating his stance that "ALL TARIFFS REMAIN IN EFFECT!"
The lawsuit argues that the power to levy taxes, tariffs, and duties lies with the Congress, not the president, according to the US Constitution. A dozen US states, including those governed by Democrats and Republicans, have filed a lawsuit against the court in New York, challenging the president's authority to impose tariffs without Congressional approval.
The court's ruling in New York temporarily lifted the tariffs and permanently prohibited them, a decision that the Trump administration appealed. It is currently unclear how the ruling will affect trade with countries with which an agreement has already been reached.
Trump defends his tariff policy on the Truth Social platform, emphasizing that "ALL TARIFFS REMAIN IN EFFECT!" and criticizing the appeals court as biased. He describes the abolition of tariffs as a total disaster that would "literally destroy" the country.
However, the lawsuit contends that the national trade policy should not depend on the president's whims. The U.S. government granted deadlines to allow countries to continue negotiating with the U.S., resulting in some tariff rates changes. The revocation of Trump's authority to impose tariffs under an emergency law could potentially pave the way for a more stable and Congressionally-approved trade policy in the future.
As the case progresses, the Supreme Court will have the final say on the matter, and the outcome could significantly impact U.S. trade relations with its global partners.
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