Federal Appeals Courts Rule Trump's Tariffs Unconstitutional, Allowing Time for Supreme Court Appeal
Multiple U.S. federal appeals courts have deemed President Trump's tariffs unconstitutional, granting a temporary stay for appeal while potentially impacting $142 billion in import tax refunds.
Federal appeals court deems Trump tariffs unconstitutional
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Appeals Court Rejects Trump’s Tariffs
Daily Caller
Appeals court rules Trump 'Liberation Day' tariffs unlawful
Washington Examiner
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Overview
- Multiple U.S. federal appeals courts ruled that President Trump's tariffs are unconstitutional, stating only Congress has the authority to impose such taxes.
- The courts found Trump's use of the International Emergency Economic Powers Act (IEEPA) for tariffs unlawful, emphasizing Congress's exclusive tax-levying power.
- The appeals courts have temporarily allowed the tariffs to remain in effect until mid-October, giving the Trump administration time to appeal to the Supreme Court.
- This ruling could require the U.S. government to refund $142 billion in import taxes collected, significantly affecting the U.S. Treasury and future trade policy.
- The decision does not impact all of Trump's tariffs, specifically excluding those on steel and aluminum or those issued under different legal authorities.
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Analysis
Center-leaning sources frame the story by portraying President Trump's tariff actions as an overreach of executive power and his trade policies as "erratic" and detrimental. They use evaluative language to describe his claims and actions, emphasizing the court's ruling as a significant "setback." The coverage consistently highlights negative economic consequences and the constitutional principle that tariffs are a core congressional power.
"The ruling was a big setback for Trump, whose erratic trade policies have rocked financial markets, paralyzed businesses with uncertainty and raised fears of higher prices and slower economic growth."
ABC News"The ruling affects Trump's "reciprocal" tariffs, imposed on most countries around the world, as well as other tariffs slapped on China, Mexico and Canada."
BBC News"The majority concluded that the tariffs in question are not authorized by the International Emergency Economic Powers Act of 1977 (IEEPA), and that the major questions doctrine precludes interpreting IEEPA to give the president the virtually unlimited tariff authority he claims."
Reason"The ruling was a big setback for Trump, whose erratic trade policies have rocked financial markets, paralyzed businesses with uncertainty and raised fears of higher prices and slower economic growth."
Associated Press"The ruling complicates Trump’s ambitions to upend decades of American trade policy completely on his own."
Chicago Tribune"The appeals court has effectively said that Trump is illegally taxing nearly all imports into the country and that Americans will have to continue paying those taxes while the rest of the legal process plays out."
Reason"The U.S. Court of Appeals for the Federal Circuit ruled that most of President Donald Trump’s so-called reciprocal tariffs on global trading partners are illegal, upholding an earlier ruling by the Court of International Trade, which found that the tariffs’ legal basis under the International Emergency Economic Powers Act wasn’t valid."
Fortune"A federal appeals court has ruled that most of President Donald Trump's sweeping global tariffs are unlawful, potentially dealing a significant blow to the president's effort to reshape the country's trade policy unilaterally."
ABC News"A U.S. appeals court ruled on Friday that most of Donald Trump's tariffs are illegal, undercutting the Republican president's use of the levies as a key international economic policy tool."
USA TODAY"An appeals court ruled that most of President Trump's tariffs are illegal, but held off on enforcing the decision for now given expectations that it will be appealed to the Supreme Court."
NPR"The ruling will not immediately block the tariffs, but it marks a significant blow to Mr. Trump's signature trade strategy."
CBS News"Uncertainty due to the tariff policy rollout has roiled stock markets, business and consumers alike for the better part of five months and the appeal court’s ruling will likely cause even more."
NBC News"The U.S. Court of Appeals for the Federal Circuit ruled Trump wasn’t legally allowed to declare national emergencies and impose import taxes on almost every country on earth, largely upholding a May decision by a specialized federal trade court in New York."
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FAQ
Federal appeals courts ruled the tariffs unconstitutional because the president used the International Emergency Economic Powers Act (IEEPA) to impose tariffs, but courts found that only Congress has the authority to levy taxes and tariffs, and IEEPA does not expressly authorize the president to impose tariffs.
The rulings could require the U.S. government to refund approximately $142 billion in import taxes collected from the tariffs, which would significantly affect the U.S. Treasury and affect future trade policy.
IEEPA allows the president to regulate imports to address unusual and extraordinary threats related to national security, foreign policy, or the economy, but it does not expressly authorize the imposition of tariffs. Courts have found that the authority to impose tariffs is primarily vested in Congress, and that IEEPA does not provide sufficient authority for the tariffs imposed under it.
No, the rulings do not affect all of Trump's tariffs. Specifically, tariffs on steel and aluminum and those issued under different legal authorities are excluded from these rulings and remain in effect.
The appeals courts have allowed the tariffs to remain in effect on a temporary stay until mid-October, providing the Trump administration time to appeal the tariffs ruling to the Supreme Court.
History
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