Donald Trump's tariffs are largely illegal : a US appeals court has issued a ruling that could trigger an international political and economic earthquake . Unless it is overturned by the Supreme Court, which the tycoon has already invoked after warning that the tariffs risk "the destruction of the United States of America." The tariffs will remain in effect until October 14 to allow the White House to appeal to the highest American court.
THE JUDGMENT – “The law,” the ruling explains, “gives the president significant authority to take a variety of actions in response to a declared national emergency, but none of those actions explicitly include the power to impose tariffs, duties, or the like , or the power to tax,” the court states.
Trump justified the series of tariffs under the International Emergency Economic Powers Act (IEEPA). This 1977 law grants the president the power to address "unusual and extraordinary" threats during national emergencies. "It seems unlikely that Congress, in enacting the IEEPA, intended to depart from its past practice and grant the president unlimited authority to impose tariffs," the ruling reads. " The law does not mention tariffs (or any of their synonyms) nor does it provide procedural safeguards that contain clear limits on the president's power to impose tariffs," the ruling continues.
The law has historically been used to impose sanctions on enemies or freeze their assets. Trump, the first president to use the IEEPA to impose tariffs, argues that the measures are justified given trade imbalances, the decline of US manufacturing power, and cross-border drug flows.
THE CONSEQUENCES – The ruling , with a vote of seven in favor and four against, potentially threatens to force the Trump administration to repay billions in tariffs. The decision, Politico writes, also raises questions about the agreements Trump has struck with the European Union, Japan, South Korea, and other major trading partners to reduce "reciprocal" tariff rates on their imports from the levels originally set by the administration in April. The ruling also threatens the tariffs Trump has imposed on China, Canada, and Mexico to pressure these countries to take greater action to prevent fentanyl and precursor chemicals from entering the United States.
THE RESPONSE – The president's immediate reaction to Truth was: " A biased appeals court has wrongly said our tariffs should be removed, but it knows that the United States of America will ultimately win. If these tariffs were ever eliminated, it would be a total disaster for the country. It would make us financially weak, and we must be strong. The United States will no longer tolerate massive 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. If left in place, this decision would literally destroy the United States of America." "For many years," he observed, "our indifferent and reckless politicians have allowed tariffs to be used against us. Now, with the help of the United States Supreme Court, we will use them to benefit our nation and make America rich, strong, and powerful again."
(Unioneonline/vl)
