Hours before a US federal appeals court declared most of President Donald Trump’s global tariffs illegal, rejecting his use of emergency powers to impose duties, his cabinet secretaries filed statements in court, warning of serious implications of ruling on US foreign policy, and leaving Washington red faced diplomatically, reported Bloomberg.
The ruling by the US court of appeals for the federal circuit in Washington, DC, said the International Emergency Economic Powers Act (IEEPA) does not authorize a president to levy tariffs. “The statute 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,” the judges said.
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The decision invalidates Trump’s “reciprocal” tariffs announced in April and another set imposed in February on China, Canada and Mexico. It does not affect tariffs issued under other legal authorities, such as those on steel and aluminum imports.
The court’s ruling came just hours after urgent statements filed by multiple members of Trump’s cabinet urging judges to delay any decision until the US Supreme Court rules.
Treasury secretary Scott Bessent warned of “dangerous diplomatic embarrassment,” while commerce secretary Howard Lutnick said a ruling against the administration without a stay would have “devastating and dire consequences,” as quoted by the news portal.
Lutnick argued tariffs had brought foreign powers to the negotiating table “in ways that no other president came close to achieving,” and cautioned that striking them down would “send a signal to the world that the United States lacks the resolve to defend its own economic and national security.”
“Suspending the effectiveness of the tariffs would expose the United States to the risk of retaliation by other countries based on a perception that the United States lacks the capacity to respond rapidly to retaliation,” Bessent added..
Secretary of state Marco Rubio added that Trump had invoked tariff powers during sensitive talks, including efforts to end Russia’s war in Ukraine, warning of “severe consequences for ongoing peace negotiations and human rights abuses.”
During oral arguments on July 31, federal circuit judges expressed skepticism over the administration’s sweeping claims of tariff authority, raising the possibility they could side with lawsuits brought by small businesses and Democratic-led states. The administration’s last moment filing indicated concern about that very outcome.
Trump had justified his tariffs under IEEPA by declaring national emergencies over trade deficits and drug trafficking, but the appeals court rejected this interpretation. “It seems unlikely that Congress intended, in enacting IEEPA, to depart from its past practice and grant the President unlimited authority to impose tariffs,” the ruling said.
The lawsuits were brought by small businesses and a coalition of Democratic-led states, who argued tariff power rests with Congress. The New York-based US court of international trade had already ruled against Trump’s tariffs in May, finding he had exceeded his authority.
The federal circuit has now paused the effect of its decision until October 14, giving the administration time to appeal to the US Supreme Court.
The ruling by the US court of appeals for the federal circuit in Washington, DC, said the International Emergency Economic Powers Act (IEEPA) does not authorize a president to levy tariffs. “The statute 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,” the judges said.
Video
The decision invalidates Trump’s “reciprocal” tariffs announced in April and another set imposed in February on China, Canada and Mexico. It does not affect tariffs issued under other legal authorities, such as those on steel and aluminum imports.
The court’s ruling came just hours after urgent statements filed by multiple members of Trump’s cabinet urging judges to delay any decision until the US Supreme Court rules.
Treasury secretary Scott Bessent warned of “dangerous diplomatic embarrassment,” while commerce secretary Howard Lutnick said a ruling against the administration without a stay would have “devastating and dire consequences,” as quoted by the news portal.
Lutnick argued tariffs had brought foreign powers to the negotiating table “in ways that no other president came close to achieving,” and cautioned that striking them down would “send a signal to the world that the United States lacks the resolve to defend its own economic and national security.”
“Suspending the effectiveness of the tariffs would expose the United States to the risk of retaliation by other countries based on a perception that the United States lacks the capacity to respond rapidly to retaliation,” Bessent added..
Secretary of state Marco Rubio added that Trump had invoked tariff powers during sensitive talks, including efforts to end Russia’s war in Ukraine, warning of “severe consequences for ongoing peace negotiations and human rights abuses.”
During oral arguments on July 31, federal circuit judges expressed skepticism over the administration’s sweeping claims of tariff authority, raising the possibility they could side with lawsuits brought by small businesses and Democratic-led states. The administration’s last moment filing indicated concern about that very outcome.
Trump had justified his tariffs under IEEPA by declaring national emergencies over trade deficits and drug trafficking, but the appeals court rejected this interpretation. “It seems unlikely that Congress intended, in enacting IEEPA, to depart from its past practice and grant the President unlimited authority to impose tariffs,” the ruling said.
The lawsuits were brought by small businesses and a coalition of Democratic-led states, who argued tariff power rests with Congress. The New York-based US court of international trade had already ruled against Trump’s tariffs in May, finding he had exceeded his authority.
The federal circuit has now paused the effect of its decision until October 14, giving the administration time to appeal to the US Supreme Court.
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