Court Rules Most Trump Tariffs Illegal but Allows Temporary Continuation

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Court Rules Most Trump Tariffs Illegal but Allows Temporary Continuation
Photo: Alex Brandon/AP/TT

Most of the tariffs that the Trump administration has introduced this year are illegal, a federal appeals court in the USA rules. Donald Trump exceeded his authority when they were introduced, according to the court, which however allows the tariffs to continue to apply until the matter has also been tried in the USA's Supreme Court.

The Court of Appeals makes its decision – made with the vote count 7–4 – in line with the American trade court that already in May declared the tariffs invalid.

However, the tariffs may remain until October 14, according to the Court of Appeals, to give the White House time to appeal to the Supreme Court in the USA.

Donald Trump brands the Court of Appeals as "partisan" and the decision as "incorrect".

"All tariffs still apply!", he writes in capital letters in a post on social media.

He adds that it would be "a complete disaster for the country" if the tariffs were removed.

Can be appealed or tried again

According to the two courts that have now tried the tariffs, Trump, as he has done, cannot use the law on economic emergency from 1977 to introduce sweeping tariffs on almost the entire world without the tariffs being approved by Congress.

The law gives great powers to the President of the USA in a national emergency, but there is no explicit mandate to introduce tariffs, fees or taxes, according to the court.

The issue can now be appealed to the US Supreme Court, but the Trump administration can also request that the trade court that rejected the tariffs in May make a new assessment.

The tariffs that the Trump administration has introduced on certain sectors – such as cars, steel and aluminum – are not affected by Friday's court decision. Instead, it concerns the general punitive tariffs that he has introduced against almost all countries, with reference to the USA's large deficit in the trade balance for goods.

Accounts for 70 percent of tariff revenue

For EU countries such as Sweden, it is thus the 15 percent US tariffs on almost all goods, which the EU and the US agreed on in August, that have been declared invalid.

Trump's so-called "reciprocal" tariffs account for around 70 percent of the tariff revenue that the USA would collect in 2026, reports The Wall Street Journal, citing the Tax Foundation organization.

In the forefront of the legal resistance to the tariffs are small businesses affected by the tariffs and a coalition of states controlled by the Democratic Party in the USA.

Corrected: In an earlier version of the text, there was an incorrect formulation of how the court decision was made.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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