Trump's tariffs 'illegal', finds US appeals court
Washington, Aug. 31 -- In a setback for US President Donald Trump, a federal appeals court has ruled that the administration's reciprocal tariffs - including the duties placed on India - were illegally applied. In a judgement on Friday, the US Court of Appeals for the Federal Circuit in Washington DC ruled that President Donald Trump did not have the authority to impose tariffs by invoking a 1970s era law known as the International Emergency Economic Powers Act (IEEPA). While the tariffs were declared illegal, the court's decision will not take effect until October 14. This will give the Trump administration time to challenge the ruling in the Supreme Court.
However, the landmark decision does cast uncertainty on the durability of Trump's tariffs. On April 2 this year, dubbed "Liberation Day" by Trump, America imposed a baseline 10% tariff on every country in the world. Additional tariffs were levied against countries with which America has a trade deficit.
It is unclear how the court ruling impacts America's ongoing trade talks with countries like India. New Delhi is grappling with a 50% tariff imposed by Trump, including a 25% "penalty" fur purchasing Russian energy. Trump's tariffs on India and Brazil as well as the tariff reduction deals agreed to with Japan, the European Union, the UK and South Korea are now under question.
The appeals court decision will also impact the tariffs imposed by Trump on Canada and Mexico for their alleged inability to counter cross-border drugs trade. The baseline 10% tariff imposed on all goods entering the United States is also affected. The federal appeals court took up the case after the Trump administration appealed an earlier decision by the Court of International Trade, which also ruled against the legality of Trump's tariffs.
Striking a defiant note, Trump took to Truth Social, his social media platform, and decried the ruling from the "highly partisan" court.
"If allowed to stand, this Decision would literally destroy the United States of America," Trump said in his Truth Social post. However, the US President noted that the tariffs remained in place....
To read the full article or to get the complete feed from this publication, please
Contact Us.