In a blow to US President Donald Trump, an appeals court has ruled that most of his tariffs are illegal. However, the president’s Cabinet tried to delay the court ruling by submitting statements that warned of serious implications of the order on US foreign policy.
According to a report by Bloomberg, US Treasury Secretary Scott Bessnet warned of “dangerous diplomatic embarrassment,” and Commerce Secretary Howard Lutnick said that the ruling against the Trump administration would have “devastating and dire consequences.”
The 7-4 decision from the US Court of Appeals for the Federal Circuit in Washington, DC, addressed the legality of what Trump calls “reciprocal” tariffs imposed as part of his trade war in April, as well as a separate set of tariffs imposed in February against China, Canada and Mexico.
The court said that the International Emergency Economic Powers Act (IEEPA) does not allow the 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 court said.
What did Trump’s Cabinet say?
The president’s Cabinet tried to pull out all the stops to delay the court ruling. Lutnick argued in court that the tariffs have brought countries to the negotiating table “in ways that no other president came close to achieving,” adding 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.”
Meanwhile, Bessent said, “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.”
Impact Shorts
More ShortsSecretary of State Marco Rubio noted that Trump had used tariff authority during delicate negotiations, including those aimed at ending Russia’s war in Ukraine, and warned of “severe consequences for ongoing peace negotiations and human rights abuses.”
Trump rejects court ruling
Trump, on the other hand, hit back at the US appeals court after it struck down most of his tariffs as unlawful , insisting the measures remain in place and vowing to take the fight to the Supreme Court.
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,” Trump said.
Warning of dire consequences if the duties were overturned, he said, “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… If allowed to stand, this Decision would literally destroy the United States of America.”