US President Donald Trump on Saturday defied a US Appeals Court ruling that made void large parts of his tariff scheme, saying that his trade policy is still in effect and vowing to appeal to the Supreme Court.
The administration acted after a ruling by the US Court of Appeals for the Federal Circuit in Washington, DC, that held the majority of Trump's tariffs were illegal.
The decision was a huge setback to one of his signature economic programs. The court allowed the tariffs to stay in place until October 14, giving the administration time to appeal.
“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 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. The U.S.A. will no longer tolerate enormous Trade Deficits and unfair Tariffs and Non Tariff Trade Barriers imposed by other Countries, friend or foe, that undermine our Manufacturers, Farmers, and everyone else. If allowed to stand, this Decision would literally destroy the United States of America.”
Judges ruled Trump overstepped his authority by using emergency powers laws to impose certain tariffs. The ruling specifically invalidated his "reciprocal" tariffs enacted in April as part of the trade war, as well as another batch issued in February against China, Canada, and Mexico. Tariffs imposed under other provisions of law — like those on steel and aluminum — were left unscathed.
Trump added: “At the start of this Labor Day weekend, we should all remember that TARIFFS are the best tool to help our Workers, and support Companies that produce great MADE IN AMERICA products. 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, and Make America Rich, Strong, and Powerful Again! Thank you for your attention to this matter.”
Trump had defended his action under the International Emergency Economic Powers Act (IEEPA), a 1977 law generally used for the imposition of sanctions or freezing of assets during national emergencies. Trump became the first US president to invoke IEEPA as a rationale for tariffs.
In its ruling, the court noted, "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 case was initiated by two individual suits — one by five small American companies and another by 12 Democratic states. Both contended that the power to collect tariffs and taxes is reserved by the Constitution for Congress, and any delegation of such power needs to be specific.
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