New York: In a possible reprieve for India, a federal appeals court has struck down the reciprocal tariffs imposed by US President Donald Trump, ruling he did not have the extensive powers to set them.
The court, however, left the tariffs in place till October 14 to give the Trump administration time to appeal to the Supreme Court.
Trump denounces judgment
Soon after the decision was announced on Friday afternoon, Trump denounced it as “highly partisan” and vowed to appeal to the Supreme Court, where he said he would find “help”.
“If allowed to stand, this Decision would literally destroy the United States of America”, Trump wrote on Truth Social.
White House Deputy Press Secretary Kush Desai said, citing the temporary stay, “The President’s tariffs remain in effect, and we look forward to ultimate victory on this matter”.
Ruling applies mostly to reciprocal tariffs
The ruling applies mostly to the reciprocal tariffs imposed by invoking the International Economic Emergency Powers Act (IEEPA) and not to the others set under the national security provisions.
The 25 per cent reciprocal tariff that hit India will certainly be removed under the ruling if it survives the Supreme Court challenge. It was not explicit if the punitive 25 per cent tariff for buying Russian oil is covered by the court ruling because Homeland Security Secretary Kristi Noem said it was to address “threats to the United States” by Russia.
The court ruling does not cover the duties imposed on steel, aluminium and copper under national security provisions, leaving open the possibility that the oil tariff may stand.
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The Federal Circuit Court of Appeals in Washington, by a 7-4 ruling, upheld the ruling by the Court of International Trade in May that had been stayed so Trump can appeal.
The ruling hinges on the Constitutional provision that gives Congress the power to impose tariffs, although it can delegate that power to the president.
“Tariffs are a core Congressional power”, the appeals court’s majority opinion said.
“The core Congressional power to impose taxes such as tariffs is vested exclusively in the legislative branch by the Constitution”, the seven judges said.
Trump admin invoked the IEEPA
As he waged his trade war, the Trump administration invoked the IEEPA, asserting that the trade deficits created an economic emergency that empowered him to set the tariffs.
The court said that the legislation did not “explicitly include the power to impose tariffs, duties, or the like, or the power to tax”.
Neal Katyal, a former acting solicitor general, was one of the principal lawyers for the group of Democratic-led states and small businesses that challenged Trump’s authority to invoke the law to impose the tariffs.
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