Appeals Court Strikes Down Trump’s Tariffs; Supreme Court Next?
UPDATE: A US appeals court just ruled that President Donald Trump lacked the authority to impose sweeping tariffs on imports, marking a significant legal setback for the former president. This decision, announced on October 13, 2023, will not take effect until October 14, allowing the government time to appeal to the Supreme Court.
The ruling challenges Trump’s assertion that tariffs are necessary for national security, a claim he has used to justify bypassing Congress. In response, Trump stated that removing the tariffs would be a “total disaster” for the United States, declaring, “Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed.” He added, “If allowed to stand, this Decision would literally destroy the United States of America.”
The disputed tariffs, first unveiled in April 2023, targeted numerous trading partners, including a 15% tariff on most imports from the European Union, which took effect on August 7, 2023. This latest decision follows a previous ruling by a federal court in New York that permanently blocked these tariffs. The appeals court largely upheld that ruling, although it did not directly ban the tariffs, leaving the door open for further legal battles.
The case has drawn attention from a coalition of 12 US states, including ten led by Democrats and two by Republicans, who argue that the power to levy taxes and tariffs lies with Congress, not the president. This legal challenge highlights a significant debate over executive power and trade policy in the United States.
As the situation develops, the impact on US trade relations and the economy remains uncertain. Observers are left wondering how this ruling will affect ongoing trade agreements and negotiations with countries already subjected to these tariffs.
Next Steps: The Biden administration’s option to appeal to the Supreme Court could lead to a historic showdown over executive power in trade. The outcome may set crucial precedents for future administrations regarding tariff authority. As the clock ticks down to the October 14 deadline, all eyes are on the nation’s highest court for what could be a pivotal ruling in US trade policy.
Stay tuned for further updates as this story unfolds. The implications of this ruling are profound, affecting not just tariffs but also the broader landscape of US trade and economic policy.
