US President Donald Trump's administration has asked the country's Supreme Court to rule on whether the tariffs it has imposed on foreign goods are legal, citing a 1977 law used in emergency situations. Reuters reports.
A federal appeals court ruled on August 29 that most of the tariffs are illegal and that Trump does not have the authority to impose them, citing the International Emergency Economic Powers Act (IEEPA).
The court assessed the tariffs that Trump has imposed on almost every country in the world, including China, Canada and Mexico. And the Trump administration has, as expected, appealed the ruling. The court allowed the tariffs to remain in effect until October 14, giving the administration just enough time to appeal.
After the ruling, Trump himself said on his social media, Truth Social, that it would be a disaster for the United States if the tariffs were lifted.
- The United States will no longer tolerate huge trade deficits and unfair tariffs and other trade barriers imposed by other countries - friend or foe - that undermine our manufacturers, farmers and everyone else, Trump wrote.
IEEPA gives the president the power to deal with a so-called unusual and extraordinary threat in the midst of a national emergency and has historically been used to impose sanctions on enemies or freeze their assets. Before Trump, the law had never been used to impose tariffs.
The appeals court ruled based on two objections. One came from five small businesses that import goods and thus pay additional for them after the tariffs. Another came from a collection of 12 American states - most of them governed by Democrats. Trump is a Republican.
According to the appeals court, the US Constitution gives Congress - not the president - the power to impose taxes and tariffs.
It was back in February, shortly after his inauguration as president, that Trump imposed tariffs on goods from China, Canada and Mexico. Trump has since said that tariffs should be imposed on goods from even more countries - including EU countries. He has described these tariffs as retaliation for trade barriers.
The EU and the US have since concluded a trade agreement, which means that the US will initially impose a 15 percent tariff on goods from the EU.
/ritzau/
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