Aug. 29 (UPI) — An 11-member appeals court on Friday struck down most of President Donald Trump‘s tariffs on foreign goods, declaring they are illegal.
The court held off mandating its decision because of a possible appeal to the U.S. Supreme Court.
Trump, in a post on Truth Social, declared: “The United States of America will win in the end.”
The U.S. Court of Appeals for the Federal Circuit ruled that Trump does not have the power to invoke the expansive tariffs on most U.S. trade partners, including a baseline 10% and much higher for nations the president called the “worst offenders.”
The 127-page opinion vacated the lower court’s injunction, blocking the tariffs altogether and directing the court to re-evaluate whether universal relief is appropriate. The chief judge is Kimberly Moore, who was appointed by President George W. Bush.
The ruling doesn’t affect tariffs imposed under other laws, such as the Section 232 tariffs on steel, aluminum and autos.
Tariffs are paid by the importing company at the U.S. ports of entry. The additional cost is often passed on to retailers and, in turn, means higher prices paid by consumers.
In July, the Department of the Treasury brought in more than $29 billion in “customs and excise taxes,” which is mostly from tariffs.
Judges agreed with the three-member Court of International Trade ruling on May 28 that set aside five executive orders that “imposed tariffs of unlimited duration on nearly all goods from nearly every country in the world.” The New York-based court, in a 49-page opinion, said the International Emergency Economic Powers Act does not give the president the “unlimited” power to levy across-the-board tariffs.
The judges’ decision was based on two cases brought by a group of small businesses and 12 Democratic state attorneys general.
They held that “the tariffs were not authorized by the International Emergency Economic Powers Act. Because we agree that IEEPA’s grant of presidential authority to ‘regulate’ imports does not authorize the tariffs imposed by the Executive Orders, we affirm.”
Four judges dissented.
“We agree with the majority’s decision on jurisdiction and standing and on the need for reconsideration of the remedy if the tariffs are unlawful,” Richard Tranto, who was appointed by President Barack Obama, wrote. “But we disagree with the majority’s conclusion on the issue of the tariffs’ legality. We conclude that plaintiffs have not justified summary judgment in their favor on either statutory or constitutional grounds.”
Trump quickly responded on Truth Social: “ALL TARIFFS ARE STILL IN EFFECT! Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end. If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak, and we have to be strong.”
He added: “At the start of this Labor Day weekend, we should all remember that TARIFFS are the best tool to help our Workers, and support Companies that produce great MADE IN AMERICA products.”
The ruling took aim on Trump’s authority.
“This case involves the extent of the President’s authority under IEEPA to ‘regulate’ importation in response to a national emergency declared by the President,” the judges wrote. “For many years, Congress has carefully constructed tariff schedules which provide for, in great detail, the tariffs to be imposed on particular goods. Since taking office, President Donald J. Trump has declared several national emergencies.”
They said Trump has departed from the “established tariff schedules and imposed varying tariffs of unlimited duration on imports of nearly all goods from nearly every country with which the United States conducts trade.”
In a separate opinion, the judges paused the ruling from taking effect through Oct. 19 to allow the Trump administration the opportunity to appeal to the U.S. Supreme Court.
Trump declared April 2 as “Liberation Day” during a “Make America Wealthy Again” event in the Rose Garden of the White House. The highest tariffs of 50% were placed on sparsely populated Lesotho, France’s Saint Pierre and Miquelon islands. Other countries facing some of the highest tariffs were Cambodia (49%), Laos (48%), Madagascar (47%), Vietnam (46%), and Myanmar (44%).
One week later with U.S. stocks and the bond market reeling, Trump instituted a 90-day pause on all reciprocal tariffs except on China. The 10% baseline that went into effect remained.
Nations then negotiated trade deals, including 15% reciprocal tariffs on European Union nations. Britain, which is not part of the EU, has a 10% tariff on most goods.
A 50% on goods from India took effect on Wednesday.
On July 9, Trump imposed a total 50% tariff in Brazil because of what he called the “disgrace” of how former President Jair Bolsonaro has been treated and an “unfair trade relationship.”
Tariffs are 15% on Japan and South Korea, with 20% on Vietnam, 19% on Indonesia, the Philippines and Malaysia.
Regarding China, a pause was extended on Aug. 11 for 90 days. Trump had China with tariffs as high as 145%, while China threatened retaliatory tariffs of 125%. During the initial 90-day truce, the United States reduced its China tariffs to 30%, with China dropping its tariffs on U.S. goods to 10%.
China and Mexico have been hit with 25% tariffs.
South Africa was hit with a 30% duty.