Despite the ruling, the appellate judges let Trump’s tariffs stand for now to allow time for a likely appeal to the U.S. Supreme Court.
A federal appeals court ruled 7-4 on Friday that President Donald Trump did not have the authority to impose most of his broad tariffs on foreign products from across the globe.
The U.S. Court of Appeals for the Federal Circuit upheld a lower-court decision that Trump overstepped his authority in using the 1977 International Emergency Economic Powers Act (IEEPA) to impose most of his tariffs.
A group of federal judges wrote in their ruling that the president has “significant authority” to take action in response to a national emergency, but “none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax.”
Despite the ruling, Trump’s tariffs will be allowed to remain in effect for now to allow time for a likely appeal to the U.S. Supreme Court.
Here’s what to know.
The ruling concerned tariffs imposed through five executive orders from February to April. In some of those orders, the Trump administration justified tariffs on Canada, Mexico and China by alleging that those countries had taken insufficient action to stem the flow of illicit drugs into the United States.
In another order, Trump said that “large and persistent annual U.S. goods trade deficits” with the rest of the world warranted sweeping tariffs affecting more than 50 countries, including Cambodia, Laos and Lesotho.
The ruling does not cover all tariffs imposed by the Trump administration, such as those on steel and aluminum.
What have Trump and administration officials said?
In a post on social media, Trump called the court a “Highly Partisan Appeals Court” and said “ALL TARIFFS ARE STILL IN EFFECT!” He added that if the tariffs were struck down, “it would be a total disaster for the Country.”
The 11 judges who heard the case were named by presidents from both parties. The dissenting opinion was written by a judge nominated by President Barack Obama.
U.S. Attorney General Pam Bondi said the Justice Department would appeal the ruling to the Supreme Court.
If Trump’s tariffs are annulled, the Trump administration has other ways to impose tariffs, such as through the 1974 Trade Act. That particular law, however, restricts tariffs to 15 percent and 150 days, “unless such period is extended by Act of Congress.”
What trade deals has the Trump administration signed?
Since the tariffs were proposed, the Trump administration has signed deals with the United Kingdom, the 27-nation European Union, Japan and South Korea.
The administration is still in negotiations with Mexico and China, while steep levies remain on U.S. buyers of imports from India, Switzerlandand Canada, among other countries.
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