US Court Rules Against Trump's Tariffs, Allowing Appeal Period

Court Decision on Trump's Tariffs

A federal appeals court in the United States issued a ruling on Friday stating that President Donald Trump exceeded his authority when he implemented reciprocal tariffs using an emergency powers statute, according to reports from various news outlets.

The court determined that these tariffs were unlawful, emphasizing that only Congress has the constitutional power to enact such extensive measures.

Despite this ruling, the judges decided to keep the tariffs in effect until October 14, allowing the Trump administration time to appeal to the Supreme Court.

In response to the court's decision, Trump criticized the ruling as 'highly partisan' and claimed that the court had wrongly suggested the tariffs should be lifted. He expressed his intention to contest the ruling in the Supreme Court.

This ruling impacts two categories of tariffs imposed by the president.

The first category includes reciprocal tariffs applied to numerous countries, including India, with rates varying from a baseline of 10% to as high as 34% for China.

These tariffs were initially enacted on April 9, but Trump later reduced the rates on imports from most countries to 10% for a period of 90 days to facilitate trade negotiations.

Trump has consistently indicated his desire to impose a reciprocal tax on various nations, citing high tariffs that these countries impose on American goods.

Concerns have been raised that these tariff measures could lead to a larger trade conflict, potentially destabilizing the global economy and triggering a recession.

The ruling also pertains to a 25% tariff on select goods imported from Canada, China, and Mexico, which was justified by the Trump administration as a response to these nations' failure to control the flow of fentanyl.

However, the ruling does not address other tariffs imposed by the U.S., such as the 50% tariffs on steel and aluminum under different legislative frameworks.

Trump stated on social media that if the court's decision led to the removal of the tariffs, it would result in a 'total disaster' for the United States.

He emphasized the need for the U.S. to maintain financial strength, asserting that the country would no longer accept significant trade deficits and unfair tariffs imposed by other nations.

On August 6, the Trump administration announced plans to double tariffs on goods imported from India to 50% due to its purchases of Russian oil amid the ongoing conflict in Ukraine. A prior 25% reciprocal tariff had already been implemented.

Trump has repeatedly accused India of contributing to Russia's military actions in Ukraine through its imports.