US appeals court finds Trump’s global tariffs illegal

[WASHINGTON] A US federal appeals court ruled on Friday (Aug 29) that most of US President Donald Trump’s tariffs, impacting numerous trading partners, were illegal – but allowed them to remain in place for now.

The 7-4 ruling by the US Court of Appeals for the Federal Circuit affirmed a lower court’s decision finding that Trump had exceeded his authority in tapping emergency economic powers to impose wide-ranging duties.

But the judges allowed the tariffs to stay in place through mid-October, allowing the parties to take the case to the Supreme Court.

The decision marks a blow to the president, who has wielded duties as a wide-ranging economic policy tool.

This could raise doubt over deals Trump has struck with major trading partners like the European Union.

Since returning to the presidency in January, Trump has invoked the International Emergency Economic Powers Act to impose tariffs on almost all US trading partners, with a 10 per cent baseline level and higher rates for dozens of economies.

Friday’s ruling noted that “the statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax.”

The US Court of International Trade ruled in May that Trump had overstepped his authority with across-the-board global levies. AFP