The U.S. Court of Appeals ruled that Trump's tariffs are illegal but temporarily maintains the status quo until the Supreme Court's decision

According to the Zhitong Finance APP, the U.S. Federal Appeals Court ruled that the broad tariffs implemented by the Trump administration largely lack legal basis, but agreed to temporarily maintain the effectiveness of the tariff measures while the White House appeals to the Supreme Court.

In a 7-4 decision on Friday, the U.S. Court of Appeals for the Federal Circuit supported the lower court's earlier finding that the Trump administration overstepped presidential authority regarding tariffs. However, the court also decided to delay the effective date of the ruling until October 14, allowing the administration ample time to appeal to the Supreme Court.

In May of this year, the U.S. International Trade Court ruled in a lawsuit brought by U.S. companies affected by the tariffs that Trump did not have the authority to impose global tariffs under the International Emergency Economic Powers Act (IEEPA) without explicit authorization from Congress. The appeals court wrote in its ruling on Friday: "We have failed to identify any clear authorization from Congress for the President to exercise tariff powers in such circumstances." The court also noted that the Trump administration issued executive orders imposing broad tariffs on several countries, including Canada and Mexico, citing reasons such as "cross-border fentanyl imports," without sufficient legal basis.

This ruling strikes at one of the core policies of the Trump administration, and if ultimately upheld by the Supreme Court, it could impact negotiations between the U.S. and some trading partners. Notably, this case did not involve tariff measures targeting specific industries (such as steel and automobiles).

Following the announcement of the ruling, Trump quickly took to social media to emphasize that the tariffs remain in effect and claimed that the appeals court is "highly partisan." He wrote: "If this ruling is upheld, America will be completely destroyed. As we begin this Labor Day weekend, we should remember that tariffs are the best tool to help workers and support American manufacturing." Trump also confirmed that the government would appeal to the Supreme Court and called on the justices to "help maintain the tariffs."

Members of Trump's cabinet had previously submitted statements to the court warning that a ruling declaring the president lacked the authority to impose global tariffs would severely harm U.S. diplomatic and economic security. Treasury Secretary Mnuchin pointed out that this would lead to "dangerous diplomatic embarrassment." Commerce Secretary Ross stated that if the tariffs were immediately abolished, the consequences would be "extremely serious and catastrophic." Secretary of State Marco Rubio added that Trump's use of IEEPA powers involves sensitive negotiations, such as a ceasefire with Russia, and if the tariffs were invalidated, it could lead to "serious consequences."

The three cabinet officials stated in their submission to the appeals court that suspending the effectiveness of the tariffs would expose the U.S. to retaliation risks. They claimed that Trump's rapid imposition of tariffs forced multiple countries, including the EU, Japan, and South Korea, back to the negotiating table, "a goal that previous presidents have never come close to achieving."