Trump administration seeks Supreme Court ruling to uphold tariff authority
What's the story
The Trump administration has appealed to the Supreme Court for a swift decision on the president's authority to impose tariffs. The move comes after a lower court ruled against these trade penalties. Small businesses have complained of economic difficulties due to these tariffs, while the government has warned that striking them down could affect ongoing trade negotiations.
Court ruling
Appeals court ruling
The US Court of Appeals for the Federal Circuit upheld a lower court's decision to strike down most of President Donald Trump's tariffs as illegal under an emergency powers law. The 7-4 ruling was issued after states and small businesses filed lawsuits claiming that these tariffs were causing them serious economic hardship.
Appeal details
Administration's response
In response to the appeals court ruling, the Trump administration has filed a petition with the Supreme Court, according to The Associated Press. The government is asking for a quick intervention in this matter, arguing that the decision casts uncertainty on foreign negotiations that President Trump has been conducting through tariffs over the past five months.
Business impact
Small businesses affected
Jeffrey Schwab, an attorney representing small businesses affected by the tariffs, stressed that these unlawful trade penalties are causing serious harm and threatening their survival. He emphasized the need for a prompt resolution of this case for his clients. The tariffs have also rattled global markets and raised fears of higher prices and slower economic growth.
Legal defense
Legal defense for tariffs
The Trump administration is defending its right to impose tariffs under federal law, specifically the International Emergency Economic Powers Act (IEEPA). Most judges on the US Court of Appeals for the Federal Circuit ruled that this act does not give Trump the power to impose tariffs without congressional approval. However, dissenters argued that it does allow the president to regulate imports during emergencies.
Trade implications
Tariffs as leverage
President Trump has used tariffs as leverage to get the European Union, Japan, and other countries to agree to new trade deals. By late August, tariff revenue had hit $159 billion, more than double what it was at the same time last year. However, some of Trump's tariffs on foreign steel, aluminum, and autos are not covered by the appeals court ruling.