Key Facts
• On August 29, U.S. Federal Appeals Court upheld a lower court ruling against Trump tariffs.
• The tariffs, based on the International Emergency Economic Powers Act (IEEPA), were deemed illegal.
• The court stated the IEEPA does not grant authority to impose tariffs via executive orders.
• Seven out of 11 judges supported the ruling; four dissented.
• Trump criticized the decision on social media, calling it “wrong” and vowed to appeal to the Supreme Court.
• The ruling will take effect on October 14 unless the Supreme Court intervenes.
• Tariffs on Japan and other nations will remain until a Supreme Court decision.
• In April, the Trump administration imposed universal tariffs citing trade deficits.
• Additional tariffs of 15% were applied to Japan and the EU starting in August.
• Sanctions on Canada, Mexico, and China for synthetic drug issues also rely on IEEPA.
• The initial lawsuit was filed by U.S. small businesses, claiming the tariffs were unlawful.
• Tariffs on steel, aluminum, and automobiles, citing national security, are not part of this case.
Summary
The U.S. Federal Appeals Court ruled on August 29 that tariffs imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA) were illegal, supporting a lower court’s decision. The court emphasized that the IEEPA does not authorize the president to impose tariffs via executive orders, a power reserved for Congress. Former President Trump criticized the ruling, announced plans to appeal to the Supreme Court, and stated that all tariffs remain in effect. The ruling is set to take effect on October 14 unless overturned by the Supreme Court. The tariffs, introduced in April to address trade deficits, included a 15% increase on Japan and the EU starting in August. Sanctions on Canada, Mexico, and China for synthetic drug issues also rely on IEEPA. The case does not involve tariffs on steel, aluminum, and automobiles, which were imposed for national security reasons.
