Trump tariffs ruled ‘illegal’ by US court, President hits back | Top 5 takeaways

The US Court of Appeals declared most of Trump's tariffs illegal but allowed them to continue until October 14 for an appeal. Trump dismissed the ruling.

A divided US appeals court ruled on Friday that most of President Donald Trump's tariffs imposed on several countries are illegal.

US President Donald Trump during a cabinet meeting at the White House in Washington, DC, (Bloomberg file)

US Court of Appeals for the Federal Circuit, however, allowed the tariffs to remain in place through October 14 to give the Trump administration a chance to file an appeal with the US Supreme Court.

Donald Trump affirmed that all tariffs imposed on the countries will remain in effect, calling the ruling by a “highly Partisan Appeals Court” incorrect.

Here are top 5 developments on US court's ruling on Trump tariffs:

1. Earlier ruling upheld: The US Court of Appeals for the Federal Circuit upheld an earlier ruling by the Court of International Trade that Trump wrongfully invoked an emergency law to issue the tariffs. But the appellate judges sent the case back to the lower court to determine if it applied to everyone affected by tariffs or just the parties involved in the case. Friday’s 7-4 decision by the Federal Circuit could extend the suspense over whether Trump’s tariffs will ultimately stand.
2. Trump has no authority to impose tariffs: The US Court of Appeals ruled that Donald Trump did not have the authority to impose tariffs by invoking a 1970s era law known as the International Emergency Economic Powers Act (IEEPA). While the tariffs were declared illegal, the court’s decision will not take effect until October 14. This will give the Trump administration time to challenge the ruling in the Supreme Court.
3. What about Trump tariffs on India? The ruling does cast uncertainty on the durability of Trump’s tariffs. On April 2, dubbed “Liberation Day” by Trump, America imposed a baseline 10% tariff on every country in the world. Additional tariffs were levied against countries with which America has a trade deficit. It is unclear how the court ruling impacts America’s ongoing trade talks with countries like India. New Delhi is grappling with a 50 per cent tariff imposed by Trump, including a 25% “penalty” for purchasing Russian energy.
4. How Trump reacted: Trump lashed out at the ruling, saying on his Truth Social platform that the appeals court “incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end”. He added that he would fight back “with the help of the United States Supreme Court.”
5. What's next? The case is expected to next go to the Supreme Court for a final ruling. The administration could now turn to the justices, who have largely backed the president on other matters. But the White House could also let the Court of International Trade revisit the matter first.
   The decision complicates Trump's ambitions to upend decades of American trade policy completely on his own. Trump has alternative laws for imposing import taxes, but they would limit the speed and severity with which he could act.

(With inputs from Shashank Mattoo in Washington DC)