In a landmark decision, a US federal court declared US President Donald Trump’s global tariff “illegal” on Friday, prompting him to vow to “fight back.”
Despite ruling that many of Trump’s tariffs were unlawful, the US Court of Appeals for the Federal Circuit in Washington permitted them to stay in effect for the time being, allowing the US president to appeal the decision to the Supreme Court.
Trump was incensed and called the court’s decision “incorrect,” claiming that “ALL TARIFFS ARE STILL IN EFFECT!”
Trump posted on Truth Social, saying, “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.”
Complete disastrous events for us
Trump, who was shocked by the ruling, warned that the US “will no longer tolerate enormous Trade Deficits and unfair Tariffs and Non-Tariff Trade Barriers imposed by other Countries, friend or foe.
” He also said that removing tariffs would be a “total disaster” for the US.
He went on to say, “The USA 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 this decision is allowed to stand, it will destroy the United States of America,” Trump wrote.
The US president emphasised that the tariffs he imposed on several countries, which led to a trade war, are the best tool for US workers and support companies that produce great MADE IN AMERICA products.
Trump said that for many years, tariffs were used against the US, but now he will go to the Supreme Court to make America rich, strong, and powerful again.
Trump crossed a line.
The 7-4 ruling by the US court noted, “The statute gives significant authority to the President to take various actions in response to a declared national emergency, but none of these actions clearly include the power to impose tariffs, duties, or similar charges, or the power to tax,” as reported by Reuters.
The decision also pointed out that the US president exceeded his power under the International Emergency Economic Powers Act (IEEPA).
This federal court ruling has created an obstacle for Trump’s plans after he boldly claimed he had unlimited power to bypass Congress and imposed tariffs on several countries, both allies and adversaries.
The decision focused on the tariffs Trump imposed on nearly every country on April 2, which he called ‘Liberation Day,’ along with levies on China, Mexico, and Canada.
The court stated he overstepped his authority when he declared national emergencies to justify imposing tariffs on several countries.
What’s next for tariff?
If tariffs are removed, the US administration argued that it will need to refund some of the import taxes that were collected. This would be a significant financial hit for the US Treasury.
According to a news report from AP, by July, revenue from tariffs reached $159 billion, exceeding expectations.
The Justice Department had earlier stated that revoking the tariffs could mean “financial ruin” for America.
“While existing trade deals may not automatically fall apart, the administration could lose a key part of its negotiating strategy.
This may encourage foreign governments to resist future demands, delay implementing previous commitments, or even seek to renegotiate terms,” said Ashley Akers, a former Justice Department trial lawyer, before the appeals court decision, as quoted by AP.
Meanwhile, Trump announced on his social media platform that he will fight this decision in the Supreme Court. “If allowed to stand, this Decision would literally destroy the United States of America,” he wrote.
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While the president still has other legal options to impose import taxes, they are much more limited.
The Trade Act of 1974, for example, allows tariffs of only up to 15% for a maximum of 150 days against countries with which the U.S. has large trade deficits.
Another option is Section 232 of the Trade Expansion Act of 1962. This is the basis for previous tariffs on steel, aluminium, and autos.
However, that route requires a formal Commerce Department investigation and cannot be initiated at the president’s discretion.
Source : Times of India
