US Appeals Court Rules Wide Swath of Trump's Tariffs Illegal
ManuelSummary:
Those tariffs face legal limbo in an appeals court case that could be decided within days.
A federal appeals court ruled on Friday that most of President Trump's global tariffs were illegal. The ruling explains the president exceeded his authority in using emergency powers to impose them.
The judges allowed the tariffs to stay in place as the case continues to be adjudicated in a lower court. Friday's decision from the US Court of Appeals for the Federal Circuit reaffirms an earlier ruling by the Court of International Trade.
Trump responded to the decision on Truth Social, saying "ALL TARIFFS ARE STILL IN EFFECT!" He also called the court "Highly Partisan" and said "with the help of the United States Supreme Court, we will use [tariffs] to benefit our nation."
The case is expected to eventually make it to the US Supreme Court, but Friday's decision to send it back to a lower court could delay that outcome, Bloomberg reports.
Meanwhile, Brazilian President Luiz Inacio Lula da Silva has authorized plans to retaliate against the 50% US tariffs imposed by President Trump, though the Brazilian leader emphasized he is looking to negotiate with the US administration.
"This is a somewhat lengthy process, and I'm in no hurry to do anything about reciprocity against the US," Lula said.
Separately, the $800 duty-free loophole ends Friday, with small imported packages to the US facing tariffs of 10% to 50%, depending on their origin.
The European Commission proposed on Thursday to withdraw all tariffs on imported US industrial goods in a bid to speed up the removal of US duties on European cars.
The proposal is the first step in enacting the framework agreement between Trump and Commission President Ursula von der Leyen, which was established last month. Trump requested the removal of tariffs before the US lowers its duties on the bloc's auto exports.
Meanwhile, Mexico is set to join the US with tariffs and will raise duties on Chinese goods under its 2026 budget plan, Bloomberg reported on Wednesday. The proposal, due next month, targets cars, textiles, and plastics to shield local industries from cheap imports.
US pressure on Mexico stems from Trump's claim that cheap Chinese goods slip into Mexico before heading north.
Meanwhile, Trump's 50% tariffs on India have now kicked in, a move that experts say could upend a decades-long push by Washington to forge closer ties with New Delhi. Trump added an extra 25% tariff on Indian imports because of the country's purchase of Russian oil.
The unfolding situations with both India and Mexico are the latest examples of how Trump's tariffs are pushing countries to choose sides between the US and China.
Earlier in August, Trump unveiled "reciprocal" tariffs on dozens of US trade partners (which you can see in the graphic below).
Those tariffs face legal limbo in an appeals court case that could be decided within days.
Justice Department lawyers and lawyers for a group of small business importers who are challenging the tariffs imposed under this authority argued their positions before the US Court of Appeals for the Federal Circuit. If the court rules against the government, it's likely Trump would appeal to the Supreme Court.
Source: Yahoo Finance
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