Key Facts
• August 29, U.S. Federal Appeals Court upheld lower court ruling against tariffs.
• 7 out of 11 judges supported the decision, citing overreach of presidential powers.
• Tariffs based on International Emergency Economic Powers Act (IEEPA) deemed unauthorized.
• Existing tariffs remain effective until October 14, pending Supreme Court appeal.
• Trump plans to appeal, stating tariffs are vital for national interests.
• Supreme Court, with 6 conservative judges, may overturn the ruling.
• Targeted tariffs include measures against Canada, Mexico, and China under IEEPA.
• Additional tariffs on autos, steel, and aluminum under Trade Expansion Act excluded.
• Lawsuit initiated in April by small businesses and 12 states, including New York.
• May ruling by International Trade Court permanently blocked reciprocal tariffs.
Summary
The U.S. Federal Appeals Court ruled on August 29 that the Trump administration’s reciprocal tariffs, enacted under the International Emergency Economic Powers Act (IEEPA), were illegal, affirming a prior lower court decision. The court emphasized that IEEPA does not grant the president authority to impose tariffs, a power reserved for Congress. Despite this, the tariffs will remain effective until October 14, allowing time for a Supreme Court appeal. Former President Trump defended the tariffs on social media, warning of national consequences if removed. The Supreme Court, with a conservative majority, could potentially reverse the decision. The lawsuit, filed in April by small businesses and 12 states, challenged tariffs targeting Canada, Mexico, and China under IEEPA, while excluding those on autos, steel, and aluminum under the Trade Expansion Act. This marks the first use of IEEPA for tariff measures, initiated during the Trump administration.
