An appeals court in Washington, DC, has ruled that tariffs imposed by U.S. President Donald Trump are largely unconstitutional.
"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," the U.S. Court of Appeals for the Federal Circuit said in its 7-4 ruling.
The court allowed the tariffs to remain in effect until October 14 to give the government time to appeal to the Supreme Court. The ruling upheld a May decision by a federal trade court in New York, which found that Trump's Liberation Day tariffs "exceed any authority granted to the President" under emergency powers law and ordered them halted.
The U.S. Attorney General's office confirmed it will appeal.
Trump rejected the ruling, describing it as "incorrect" and partisan. "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," he wrote on Truth Social. "If these Tariffs ever went away, it would be a total disaster for the Country. If allowed to stand, this Decision would literally destroy the United States of America."
The Trump administration has defended tariffs as a tool to pressure foreign exporters. Officials warned that striking them down could lead to large refunds of collected import taxes, impacting the Treasury. Tariff revenue had reached US$159 billion by July, twice the amount of the previous year. The Justice Department said repeal could mean "financial ruin" for the country.
The tariffs were imposed under the International Emergency Economic Powers Act (IEEPA), which grants presidential powers to respond to "unusual and extraordinary" threats. Trump declared in April that the imbalance between U.S. imports and exports constituted an emergency. The country has imported more than it exports for decades.
"It seems unlikely that Congress intended, in enacting IEEPA, to depart from its past practice and grant the President unlimited authority to impose tariffs," the ruling stated. "The statute neither mentions tariffs (or any of its synonyms) nor has procedural safeguards that contain clear limits on the President's power to impose tariffs."
Jeffrey Schwab, an attorney for small businesses affected by the tariffs, said Friday's decision "protects American businesses and consumers from the uncertainty and harm caused by these unlawful tariffs."
Source: DW