A federal appeals court ruled Friday that President Donald Trump had no legal right to impose sweeping tariffs but left in place for now his effort to build a protectionist wall around the American economy.
The U.S. Court of Appeals for the Federal Circuit ruled Trump wasn´t legally allowed to declare national emergencies and impose import taxes on almost every country on earth, largely upholding a May decision by a specialized federal trade court in New York.
But the court’s 7-4 decision tossed out a part of that ruling striking down the tariffs immediately, allowing his administration time to appeal to the Supreme Court.
Trump slammed the ruling but made it clear that his economic plans were still full speed ahead in a post to Truth Social.
‘ALL TARIFFS ARE STILL IN EFFECT! Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end. If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak, and we have to be strong.’
‘The U.S.A. will no longer tolerate enormous Trade Deficits and unfair Tariffs and Non Tariff Trade Barriers imposed by other Countries, friend or foe, that undermine our Manufacturers, Farmers, and everyone else. If allowed to stand, this Decision would literally destroy the United States of America.’
‘At the start of this Labor Day weekend, we should all remember that TARIFFS are the best tool to help our Workers, and support Companies that produce great MADE IN AMERICA products. For many years, Tariffs were allowed to be used against us by our uncaring and unwise Politicians.’
‘Now, with the help of the United States Supreme Court, we will use them to the benefit of our Nation, and Make America Rich, Strong, and Powerful Again! Thank you for your attention to this matter.’
A federal appeals court ruled Friday that President Donald Trump had no legal right to impose sweeping tariffs but left in place for now his effort to build a protectionist wall around the American economy
White House spokesman Kush Desai told The Daily Mail in a statement that the Trump administration is confident.
‘President Trump lawfully exercised the tariff powers granted to him by Congress to defend our national and economic security from foreign threats. The President’s tariffs remain in effect, and we look forward to ultimate victory on this matter.’
The decision complicates Trump´s ambitions to upend decades of American trade policy completely on his own.
Trump has alternative laws for imposing import taxes, but they would limit the speed and severity with which he could act.
His tariffs – and the erratic way he´s rolled them out – have shaken global markets, alienated U.S. trading partners and allies and raised fears of higher prices and slower economic growth.
But he´s also used the levies to pressure the European Union, Japan and other countries into accepting one-sided trade deals and to bring tens of billions of dollars into the federal Treasury to help pay for the massive tax cuts he signed into law July 4.
‘While existing trade deals may not automatically unravel, the administration could lose a pillar of its negotiating strategy, which may embolden foreign governments to resist future demands, delay implementation of prior commitments, or even seek to renegotiate terms,’ Ashley Akers, senior counsel at the Holland & Knight law firm and a former Justice Department trial lawyer, said before the appeals court decision.
‘A ruling against the tariffs would represent not just a legal defeat, but a serious blow to the administration´s coercive trade diplomacy model.´
The government also might have to refund some of the import taxes that it´s collected, delivering a financial blow to the U.S. Treasury.
‘It would be 1929 all over again, a GREAT DEPRESSION!’ Trump said in a previous post on Truth Social.
Revenue from tariffs totaled $142 billion by July, more than double what it was at the same point the year before. Indeed, the Justice Department warned in a legal filing this month that revoking the tariffs could mean ‘financial ruin’ for the United States.
This is a developing story.
