Trump’s Sweeping Tariffs Are Invalidated by Appeals Court

A federal appeals court ruled that many of President Trump's tariffs were illegal, dealing a significant blow to his trade strategy. The court affirmed a lower court's decision that Trump lacked unlimited authority to impose taxes on imports, though enforcement of the ruling was delayed until mid-October to allow for a potential Supreme Court appeal. The ruling casts doubt on Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs on numerous trading partners, a law typically reserved for sanctions and embargoes. The administration warned that weakening tariff powers could cause economic chaos and jeopardize trade agreements, such as one with the European Union. Trump criticized the court's decision on social media, vowing to appeal. The tariffs in question include those on China, Canada, and Mexico, imposed under IEEPA, which does not explicitly mention tariffs. Without IEEPA, Trump's tariff powers would be limited, requiring congressional support. Legal challenges from businesses and states have argued that Trump's tariffs were issued illegally. The appeals court's decision underscores that Congress, not the president, holds constitutional authority over tariffs. Despite the setback, Trump retains significant tariff powers through other trade laws, such as Section 232 for national security-related duties and Section 122 for temporary global tariffs.