An appeals court in Washington, DC, ruled on Friday that the sweeping tariffs imposed by US President Donald Trump are largely unconstitutional.
“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 Appeals for the Federal Circuit said.
In its 7-4 ruling, the court, however, also said the tariffs could remain in place until October 14 to allow the government to appeal the ruling to the Supreme Court.
Friday’s ruling largely upheld a May decision by a specialized federal trade court in New York which had ruled Trump’s Liberation Day tariffs “exceed any authority granted to the President” under the emergency powers law and ordered a halt to the tariffs.
Shortly after the ruling on Friday, the US Attorney General’s office announced it would appeal the decision.
Trump says ruling would ‘destroy’ the US
Trump contended that the ruling was “incorrect” and attacked the court for partisanship.
“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,” he wrote in a post on his Truth Social network. “If these Tariffs ever went away, it would be a total disaster for the Country.
“If allowed to stand, this Decision would literally destroy the United States of America,” he added.
The US president has turned to tariffs on foreign goods as a means of putting pressure on countries that export goods to the United States.
The Trump administration warned that striking down tariffs could force refunds of import taxes that has been collected, impacting the US Treasury considerably.
Tariff revenue reached $159 billion (€136 billion) by July, twice of last year’s amount.
The Justice Department warned that repeal could mean “financial ruin” for the country.
Tariffs followed Trump’s declaration of emergency
Trump imposed the tariffs under the International Emergency Economic Powers Act, which gives the president the power to address “unusual and extraordinary” threats during national emergencies.
Trump said in April that the US importing more than it exports constituted an emergency. The country has imported more for decades.
“It seems unlikely that Congress intended, in enacting IEEPA, to depart from its past practice and grant the President unlimited authority to impose tariffs,” the ruling said. “The statute neither mentions tariffs (or any of its synonyms) nor has procedural safeguards that contain clear limits on the President’s power to impose tariffs.”
Jeffrey Schwab, an attorney for small businesses affected by the tariffs, said Friday’s decision “protects American businesses and consumers from the uncertainty and harm caused by these unlawful tariffs.”
Friday’s decision does not impact tariffs issued under other legal authority, such as Trump’s tariffs on steel and aluminum imports.
Edited by Jon Shelton
