Yesterday, a US appeals court delivered a ruling on the legality of tariffs imposed by President Donald Trump, declaring that most of the tariffs are illegal. The court emphasized that the authority to set taxes and tariffs belongs to Congress, not the president, according to the US Constitution.
The case centered on two types of tariffs: universal duties on all countries and specific measures against China, Mexico, and Canada, which were supposedly justified as efforts to fight drug trafficking. The court found that the 1977 emergency powers law invoked by Trump does not give the president the right to impose tariffs.
The ruling does not affect all Trump-era tariffs: duties on steel, aluminum, and automobiles remain in place, as they were imposed under different laws. Until October 14th, the administration can appeal the decision to the Supreme Court.
Trump responded sharply, asserting that the court’s decision was wrong and insisting that all tariffs remain in effect. Meanwhile, US businesses express concern about the unpredictability of tariff policy, which complicates planning and raises prices. If the decision takes effect, the government may need to refund significant sums to importers.
Politically, the decision limits presidential powers over trade policy and could impact the balance between Congress and the President on economic and security issues. The Supreme Court may issue the final verdict. The situation is closely watched both domestically and abroad.
