U.S. Appeals Court Rules Most of Trump's Tariffs Unlawful, Sets Stage for Supreme Court Battle

TMTPOST -- A federal appeals court on Friday ruled all the tariffs U.S. President Donald Trump introduced under the International Emergency Economic Powers Act of 1977 (IEEPA) are unlawful, setting the stage for a legal battle bound for the Supreme Court.

Credit：U.S. Court of Appeals for the Federal Circuit

The U.S. Court of Appeals for the Federal Circuit in Washington, D.C. found Trump overstepped his presidential powers with his global tariffs. The court said in a flling that it agreed that the IEEPA』s grant of presidential authority to 「regulate」 imports does not authorize the tariffs imposed by his five executive orders.

The Trump administration had argued that a president can unilaterally impose wide-ranging, global tariffs by invoking IEEPA to protect the U.S. from international threats. Enacted in 1977, IEEPA authorizes the president to 「regulate」 international commerce after declaring a national emergency. But the Federal Circuit on Friday upheld a lower-court ruling against Trump』s tariff.

The ruling shot down most of tariffs that the Trump administration has implemented so far this year, including reciprocal tariffs on all the trading partners and trafficking tariffs hitting Canada, Mexico and China. We dissent from the majority』s affirmance of the Court of International Trade (CIT)』s summary judgment that the reciprocal and trafficking tariffs are unlawful, the appeals court in its opinion released on Friday concluded.

The three-judge CIT in Manhattan on May 28 ordered permanently halt orders regarding tariffs and barred all modifications to them, blocking the Trump administration』s tariffs dating  back to February 1, including the reciprocal tariffs against almost all the U.S. trading partners announced on April 2, the self-proclaimed 「Liberation Day」.

The panel of federal judges ruled the IEEPA that Trump invoked to justify the tariffs, doesn』t authorize any of the Trump』s tariff order. "The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder," the judges said in their decision.

The Trump administration appealed the trade court』s ruling at night on May 28 to the U.S. Court of Appeals for the Federal Circuit. The appeals court a day later granted a request from the White House to temporarily pause the Court of International Trade』s ruling.

In a 7-4 vote ruling on Friday, the Federal Circuit stated IEEPA 「bestows significant authority on the president to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax.」

「We affirm the CIT』s holding that the Trafficking and Reciprocal Tariffs imposed by the Challenged Executive Orders exceed the authority delegated to the President by IEEPA』s text. We also affirm the CIT』s grant of declaratory relief that the orders are 「invalid as contrary to law,」 said the Federal Circuit in its opinion.

While the latest decision of the appeals court stroke a big blow to the core of Trump』s trade policy, the tariffs remain in place as the case continues to be adjudicated in the CIT. The appeals court said its ruling would not come into effect until October 14, effectively giving the Trump administration a chance and time to file an appeal with the Supreme Court. 

Trump responded the ruling on his social media Truth Social: 「ALL TARIFFS ARE STILL IN EFFECT!」  「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,」 he posted. 「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 suggested his administration would make the case to the U.S. Supreme Court. 「For many years, Tariffs were allowed to be used against us by our uncaring and unwise Politicians. Now, with the help of the United States Supreme Court, we will use them to the benefit of our Nation,」 he wrote.

"President Trump lawfully exercised the tariff powers granted to him by Congress to defend our national and economic security from foreign threats. The president』s tariffs remain in effect, and we look forward to ultimate victory on this matter." White House spokesman Kush Desai told Fox News later Friday.

On May 29, a day following the CIT ruling unveiled, Trump  suggested the administration would seek a Supreme Court battle to challenge the ruling. "Hopefully, the Supreme Court will reverse this horrible, Country threatening decision, QUICKLY and DECISIVELY," the president wrote in a social media post.