A U.S. appeals court on Friday upheld an earlier ruling that U.S. President Donald Trump’s tariffs on Canada and other countries under national emergency provisions were imposed illegally, but will keep the duties in place for now.
The U.S. Court of Appeals for the Federal Circuit in Washington, D.C., in a split decision, agreed with a specialized federal trade court that Trump exceeded his authority as president by hitting Canada, Mexico, China and dozens of other trading partners with sweeping tariffs that have upended global trade and economies.
The ruling did not strike down the tariffs immediately, however, but instead keeps them in place until Oct. 14 to allow for the Trump administration to appeal to the U.S. Supreme Court.
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“ALL TARIFF ARE STILL IN EFFECT,” Trump posted on social media after the ruling was released.
“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.”
The 7-4 decision upholds a ruling in May by the U.S. Court of International Trade, which found Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs by declaring national emergencies was unlawful and violated the U.S. Constitution, which affords tariffing and tax powers to the U.S. Congress.
Trump used IEEPA for two of his largest trading policies: so-called “reciprocal tariffs” on dozens of countries to combat what Trump claimed was a national emergency of trade deficits; and what the courts have referred to as “trafficking tariffs” on Canada, Mexico and China, which Trump has accused to contributing to a national emergency of fentanyl entering the U.S.
The majority of justices on the appeals court sided with the Court of International Trade in noting the IEEPA makes no mention of tariffs, and that the Trump administration was wrong to argue it has unlimited tariffing power under that law.
“We are not addressing whether the President’s actions should have been taken as a matter of policy. Nor are we deciding whether IEEPA authorizes any tariffs at all,” the majority wrote.
“Rather, the only issue we resolve on appeal is whether the Trafficking Tariffs and Reciprocal Tariffs imposed by the Challenged Executive Orders are authorized by IEEPA. We conclude they are not.”
More to come…
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