General
A divided 7-4 decision from the US Court of Appeals found Trump overstepped his authority by using emergency economic powers to impose sweeping tariffs. The panel ruled that setting import duties lies with Congress, not the executive branch.
In a petition filed last week, Trump’s legal team urged the high court to act swiftly, arguing that the president must retain flexibility to impose tariffs in defense of national and economic security. The close appeal vote increases the likelihood that the Supreme Court will take up the case.
If the lower court ruling stands, it could unravel much of Trump’s trade policy. Billions of dollars in collected tariffs might have to be refunded, while delicate negotiations with global partners could falter. The case originated from lawsuits by small businesses and state coalitions, claiming the tariffs damaged local economies.
Trump’s executive orders, signed in April, applied a 10% baseline tariff along with additional levies on over 90 nations. Steel and aluminum duties remain unaffected.
The Supreme Court’s decision could ultimately have a major bearing on the future direction of both US policy and global trade.
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