US Court Strikes Down Trump's Global Tariffs, Citing Overreach
Appeals court rules former president exceeded authority, but tariffs remain in place pending potential Supreme Court review.
A U.S. federal appeals court has ruled that many of former President Donald Trump's global tariffs are illegal, a decision that challenges a cornerstone of his trade policy and introduces fresh uncertainty for global commerce. The court found that the former president exceeded his authority under the 1977 International Emergency Economic Powers Act (IEEPA) when imposing the broad-based duties.\n\nThe ruling specifically targets tariffs invoked under the IEEPA, as well as duties aimed at China, Mexico, and Canada intended to curb the flow of fentanyl. However, significant sectoral tariffs on automobiles, steel, and aluminum were not included in the decision and remain unaffected.\n\nDespite the ruling, the tariffs will not be lifted immediately. The court has stayed its decision until October 14, allowing time for the case to be appealed to the Supreme Court. The White House has already signaled its intent to fight the ruling, expressing confidence in an 'ultimate victory.'\n\nIn a statement on his Truth Social network, Trump criticized the court as 'highly partisan' and asserted that removing the tariffs would be a 'total disaster for the Country.' He vowed to seek a favorable outcome from the Supreme Court.\n\nThe decision injects a new variable into a market that has previously seesawed on trade policy news. While stocks initially reacted negatively to many of Trump's tariff announcements, major indexes like the S&P 500 have since recovered to reach new highs, suggesting investors have largely priced in the existing trade landscape. The coming weeks will be closely watched as the legal battle over presidential tariff authority heads for a potential showdown in the nation's highest court.