A US federal appeals court has ruled that most of Donald Trump’s global tariffs are illegal. The judges said Trump did not have the power to use emergency laws to place tariffs on almost every country the US trades with. The court explained that the law he used, the International Emergency Economic Powers Act (IEEPA), does not allow a president to impose taxes or tariffs. Instead, the power to tax belongs to Congress.
Trump had announced a 10% tariff on imports from all countries, saying it was needed to fix “unfair” trade with the US. But the court said this was an overreach of presidential power. The decision supports an earlier ruling by the Court of International Trade.
Even though the tariffs were ruled illegal, they will stay in place until mid-October. After that, they cannot continue unless the Supreme Court overturns the appeals court decision. Trump has already promised to challenge the case at the Supreme Court.
This ruling could affect the US economy and global trade. Tariffs are taxes that raise the price of imported goods, so companies and customers may feel uncertain about what comes next. Other countries might also delay business with the US until the situation is clear.
If the Supreme Court agrees with the appeals court, the tariffs will end, and the US may face questions about paying back billions collected from businesses. But if the court sides with Trump, he will gain more power to use emergency laws in trade matters.
For now, the tariffs on most imports remain until October, while separate tariffs on steel, aluminium, and copper are not affected. The final outcome will depend on the Supreme Court’s decision in the coming months.
-Peace News Desk