A US appeals court has ruled that most of the global tariffs put in place by US President Donald Trump were illegal, Reuters reports.
The decision could lead to a big legal fight and may affect Trump's trade policies.
The US Court of Appeals for the Federal Circuit voted 7–4 against Trump, saying the tariffs were "invalid as contrary to law." The judges explained that only Congress has the power to set tariffs, not the president.
The ruling, announced on Friday, will not take effect until 14 October. This gives time for the case to possibly go to the Supreme Court.
Trump strongly criticised the decision on Truth Social. He wrote, "If allowed to stand, this Decision would literally destroy the United States of America."
He also said, "Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end. If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak, and we have to be strong."
Trump had used the International Emergency Economic Powers Act (IEEPA) to justify the tariffs, claiming that trade problems were a national security threat. But the court ruled that the law does not give the president unlimited power to impose tariffs, and that Congress never meant for it to be used that way.
The case began after small businesses and several states sued following Trump's April orders. Those orders added a 10% tariff on almost all countries and "reciprocal" tariffs on dozens more. A lower court had already said the tariffs were illegal, but that was put on hold during the appeal.
The new ruling also cancels tariffs on Canada, Mexico, and China, which Trump said were needed to stop drug imports. But tariffs on steel and aluminium remain, since they were created under a different law.
The court decision also raises doubts about trade deals some countries made with the US for reduced tariff rates.
Even though this ruling is a setback for Trump, the case may now go to the Supreme Court, where six of the nine judges were appointed by Republicans—three of them by Trump himself.
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