US President Donald Trump on Friday said that he would “fight back” after a US federal court in a significant ruling found his global tariffs “illegal.” The US court of appeals for the federal circuit in Washington ruled that many of Trump’s tariffs were illegal; however, it allowed them to remain in place for now, giving the US president time to take the matter to the Supreme Court. A furious Trump termed the court ruling “incorrect,” saying that “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,” Trump said in a post on Truth Social.
‘Total disaster for US’
Blown by the decision, Trump flagged that if tariffs ever went away, it would be a “total disaster” for US, adding that the country “will no longer tolerate enormous Trade Deficits and unfair Tariffs and Non-Tariff Trade Barriers imposed by other Countries, friend or foe.” “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,” he added. “If allowed to stand, this Decision would literally destroy the United States of America,” Trump wrote further. The US president underlined that the tariffs imposed by him on several countries, which resulted in a trade war, are “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 US but now he will approach Supreme Court to make America “Rich, Strong, and Powerful Again.”
Trump went too far
The 7-4 ruling by the US court observed: “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,” as quoted by Reuters.The decision also noted that the US president had exceeded his authority under the International Emergency Economic Powers Act (IEEPA).Federal court’s ruling has thrown a roadblock to Trump’s path after he audaciously claimed unlimited power to bypass Congress and imposed tariffs on several countries, friends and foes. The decision was centred on tariffs Trump imposed on almost every country on earth on April 2, calling it ‘Liberation Day,’ as well as levies on China, Mexico, and Canada. The court stated that he overstepped when he declared national emergencies to justify imposing tariffs on several countries.
What’s next?
If tariffs are struck down, the US administration argued that it will have to refund some of the import taxes that were collected. It will be a major financial blow for US treasury. According to news report from AP, by July the revenue from tariffs totalled to $159 billion, more than expected. The justice department earlier had said that revoking the tariffs could mean “financial ruin” for America.“While existing trade deals may not automatically unravel, the administration could lose a pillar of its negotiating strategy, which may embolden foreign governments to resist future demands, delay implementation of prior commitments, or even seek to renegotiate terms,” Ashley Akers, a former justice department trial lawyer, said before the appeals court decision, as quoted by AP. Meanwhile, Trump declared on his social media platform that he will take the fight to the Supreme Court. “If allowed to stand, this Decision would literally destroy the United States of America,” he wrote.While the president still has other legal tools to levy import taxes, they are far more limited. The Trade Act of 1974, for example, allows tariffs of only up to 15% and for a maximum of 150 days against countries with which the U.S. runs large trade deficits.Another option is Section 232 of the Trade Expansion Act of 1962 — the basis for past tariffs on steel, aluminum and autos. But that route requires a formal Commerce Department investigation and cannot be triggered at the president’s discretion.
