Court ruled Trump's tariffs illegal, US President said tariffs remain

(Patria) - A US appeals court ruled that most of the tariffs recently imposed by US President Donald Trump are illegal, undermining his use of tariffs as a key weapon in international economic policy.

In his second term, Trump made tariffs the cornerstone of US foreign policy, using them for political pressure to negotiate more favorable trade terms with countries exporting to the US.

Tariffs give the Trump administration leverage to extract economic concessions from trade partners, but they have also caused significant uncertainty in global financial markets.

The decision of the US Court of Appeals in Washington dealt with the legality of Trump's so-called "reciprocal" tariffs, which he imposed in February against China, Canada, and Mexico, and in April against most other countries worldwide.

The court's decision does not affect tariffs imposed under other legal authorities, such as Trump's tariffs on steel and aluminum imports.

The case is expected to be appealed to the US Supreme Court.

Trump justified the imposition of tariffs by the International Emergency Economic Powers Act (IEEPA), which grants the president powers to address "unusual and extraordinary" threats during national emergencies.

In April, Trump declared a national emergency because the US has been importing more than it exports for decades, believing that the huge trade deficit undermines US manufacturing capacity and military readiness.

The Court of Appeals ruled in two cases – one initiated by five small US companies, and the other by 12 US states led by Democrats, who claim that IEEPA does not allow for the imposition of tariffs.

According to the lawsuits, the Constitution grants Congress, not the president, the authority to impose taxes and tariffs, and any delegation of that authority must be both explicit and limited.

The US Court of International Trade, based in New York, ruled on May 28 against Trump's tariff policy, stating that the president exceeded his authority when imposing both sets of disputed tariffs.

Another court in Washington ruled that IEEPA does not authorize Trump's tariffs, and the government also appealed that decision. At least eight lawsuits have challenged Trump's tariff policy, including one filed by California.

Shortly after the Court of Appeals ruling, Trump announced via social media that the ruling was incorrect and that the tariffs remain in effect.

"All tariffs remain in effect! Today, a highly partisan Court of Appeals incorrectly said our tariffs should be lifted, but they know that the United States will ultimately win," Trump stated.

"If these tariffs were ever to disappear, it would be a complete disaster for the country. It would make us financially weak, and we must be strong," he added.

The statement continued that the United States will no longer tolerate trade deficits and barriers imposed by other countries.

"The US will no longer tolerate huge trade deficits and unfair tariffs and non-tariff trade barriers imposed by other countries, friends or enemies, which undermine our manufacturers, farmers, and everyone else. If allowed to persist, this decision would literally destroy the United States," Trump emphasized.

Regarding the upcoming Labor Day holiday, Trump called tariffs the best tool to help American workers and businesses.

"At the beginning 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 products made in America. For many years, tariffs have been allowed to be used against us by our heartless and unwise politicians. Now, with the help of the Supreme Court of the United States, we will use them for the benefit of our nation and make America rich, strong, and powerful again! Thank you for your attention to this matter," Trump concluded.