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The Federal Appeal Court ruled that most of the tariffs for Donald Trump are overcoming its use of emergency powers as president.
The so -called mutual tariffs – imposed in almost every country from which the US is traded illegally, the US Appeal Court said on Friday.
The decision supports the ruling in May in the International Trade court, which also rejected the Trump argument that its global tariffs were allowed in accordance with the Emergency Economic Powers Act.
Many tariffs that will be affected by the decree related to the announcement in April a single 10% import rate from all countries, which, according to Trump, will even come out with “unfair” trade relations with the United States.
The court did not stop the tariffs, but instead stated that he would remain on the spot until mid -October, creating another legal challenge in the US Supreme Court.
There are many more unknown, but here’s what we still understand about the ruling – and what it can mean for the flagship policy of the US president.
In its decision, the 7-4 Appeal Court supported the conclusion of the lower court that Trump has no powers to impose global tariffs.
In many respects, this happened from the law that Trump is accustomed to justifying the policy, the law on international emergency economic powers (IEEPA), which, according to the judges, does not give “the right to impose tariffs, duties, or the like or the right of taxation.”
A The US Appeals Den rejaled Trump’s argument that tariffs were allowed within the framework of its emergency economic powers, calling the fees “invalid as contrary to the law.”
Trump immediately criticized this decision, making the truth social in the hour after he landed to name the Appeal Court “very guerrilla” and the “disaster” for the country.
“If this is allowed to withstand, this decision is literally destroying the United States,” he wrote.
The decades of decades, which has been repeatedly deployed by Trump during both his conditions, gives the US President significant powers to respond to an emergency or a great threat due to foreign ones.
A Law 1977 that the president can attract a number of economic leverage “to fight any unusual and unusual threat that has its source as a whole or significant part outside the United States, to national security, foreign policy or economics.”
It was used by both Presidents Barack Obama and Joe Biden, who appealed to the law on the introduction of Russia after the illegal annexation of Crimea in 2014, and then after a full -scale invasion of Ukraine eight years later.
However, the court of the court said in its decision that the law on emergencies “did not give the president a broad powers to impose tariffs.”
IEPA “neither mentions tariffs (or any of its synonyms), and has no procedural guarantees that hold obvious restrictions on the President to impose tariffs,” they said.
Trump claimed when he represented his global tariffs that the trading imbalance was harmful to the US national security and therefore was a national emergency.
But the court ruled that the introduction of the tariffs is not included in the president’s mandate, and “the power of the wallet (including the authorities and tax) is owned by Congress.”
Out of what is a significant failure at Trump’s agenda, the Federal Appeal Court ruling may have a direct impact on the US economy when the effects are felt in the world markets.
Tariffs are taxes that companies have to pay for the import of certain goods from foreign countries – so that they can affect sales and profit margins.
“The enterprises will be uncertain,” said D -R -Linda Yue, Economist of the University of Oxford and London Business School, BBC Radio 4 said today.
The tariffs are aimed at the release of domestic firms from the purchase of foreign goods, in turn, which affect international trade.
As the countries are expecting to find out if the US Supreme Court comes – which seems likely to be decided to restrain business from the United States.
If that happens, D -Ru said, it can “mitigate economic activity”.
There are also significant consequences that can be felt in the political sphere.
For example, if the Supreme Court cancels the decision of the Federal Appeal Court and the parties with the Trump administration, it can create a precedent that excites the president to use IEPA more aggressively than he has done so far.
Now the case is likely to go to the US Supreme Court, a challenge that Trump signaled social truth.
“The tariffs allowed us to use our unreasonable and unreasonable politicians against us,” Trump wrote. “Now, with the help of the US Supreme Court, we will use them for the benefit of our nation and make America rich, strong and powerful again!”
The conservative majority in the US Supreme Court potentially can make it more likely on the president’s opinion.
Six out of nine judges were appointed by the Presidents of the Republicans, including three who chose Trump during his first term at the White House.
But the court was also more critical of the presidents when they seem to overcome a policy that is not authorized by Congress.
For example, during Joe Biden’s presidency, the court expanded what he called “the main questions of the doctrine” to recognize the democratic efforts to use existing laws to limit the greenhouse gas emissions and forgive the debt of the student loan for millions of Americans.
The Federal Appeal Court was divided by 7-4 in its decision that almost universal Trump tariffs are illegal. She has now given the US administration by mid -October to apply to the US Supreme Court in the case with the consequences for both the US and its trade communication with the rest of the world.
If the Supreme Court confirm this decision, it can cause uncertainty in the financial markets.
There will be questions about whether the US will have to pay billions of dollars that have been collected at the expense of import taxes.
This may also question or large economy – including UK. Japan and South Korea – They have been concluded in individual trade transactions that they provided in the United States on the eve of August. Other trades that are currently consistent may also be thrown into chaos.
If allowed to withstand, the decision on the appeal court will also be a great blow to Trump’s political power and reputation transactions. But if it was abolished by the Supreme Court, it would have the opposite effect.
This ruling affects Trump “Mutual tariffs”which includes patchwork of different tariffs in most countries, including taxes made for products from China, Mexico and Canada.
Those cats on almost every product from almost every country from which the US is trading will remain in place until mid -October.
After October 14, they will no longer be fulfilled, the Court of Appeal said.
Separately, the tariffs for steel, aluminum and copper brought to another presidential body will remain intact and not affect the court ruling.