Most of Trump's tariffs were illegal, US court rules
What's the story
A United States appeals court has ruled that most of President Donald Trump's tariffs were illegal. The ruling was delivered by the US Court of Appeals for the Federal Circuit in Washington, DC. It found that Trump had exceeded his authority by imposing these tariffs, which were a key part of his economic strategy.
Economic defense
Trump defends tariffs on Truth Social
In response to the ruling, Trump took to Truth Social to defend his tariffs. He called the decision "incorrect" and insisted that all tariffs remain in effect. "If these Tariffs ever went away, it would be a total disaster for the Country," he said. He also argued that tariffs are key to fighting trade deficits and foreign trade barriers.
Targeted tariffs
Court ruling affects only 'reciprocal' tariffs
The court ruling specifically targeted the "reciprocal" tariffs that Trump introduced in April as part of his trade war. These, along with other levies imposed on China, Canada, and Mexico earlier this year, were addressed in the court's ruling. However, tariffs imposed under different legal authorities, such as those on steel and aluminum imports, were not affected by this decision.
India's stance
What does ruling mean for India's tariffs?
Despite the US court's ruling, trade experts believe that India's tariffs are safe. This is because Trump had invoked other legal authorities for subsequent tariff rounds on India, anticipating possible challenges to IEEPA-based measures. Thus, even if reciprocal tariffs are struck down, later duties imposed under alternate laws would remain intact.