The United States Court of Appeals has ruled that former President Donald Trump exceeded his authority when he imposed global tariffs based on the IEEPA law. According to the court, this law does not grant the president the right to unilaterally impose tariffs. Nevertheless, the judges have kept the tariffs in effect until October 14 while further legal proceedings are ongoing.
This is reported by Business • Media
Legal Battle and White House Position
The Trump administration has the option to appeal the decision to the US Supreme Court or wait for a new ruling from the International Trade Court. The White House insists on the legality of the imposed tariffs, and all current restrictions remain in force. The court, referencing the so-called “important questions doctrine,” emphasized that clear congressional approval is required for decisions of this magnitude, which is absent in the IEEPA law. Thus, all “global tariffs”—the standard 10%, as well as additional tariffs against Mexico, China, and Canada, including the latest trade restrictions imposed on August 7 in response to actions by other countries—are now in question.
“the important questions doctrine,” emphasizing that clear congressional approval is needed for such decisions, which is lacking in the IEEPA. Consequently, the so-called “global tariffs” (the base 10%), additional tariffs against Mexico, China, and Canada, as well as the latest “response” tariffs imposed on August 7, are at risk.
Possible Consequences and Alternatives
If the decision to cancel Trump’s tariffs takes effect, the US government may be forced to refund already paid tariffs and review a number of existing trade agreements. This was the basis for the court’s caution regarding the immediate cancellation of tariffs, as serious foreign policy consequences could arise. Meanwhile, Trump’s team is exploring alternative ways to impose tariffs, including through the use of Section 232 of the Trade Expansion Act. Donald Trump himself stated that the cancellation of tariffs would be a disaster for the country.