In US, a federal appeals court has struck down several reciprocal tariffs imposed by US President Donald Trump, saying he unlawfully leaned on emergency powers to impose the import taxes. The court observed International Emergency Economic Powers Act does not authorise tariffs like the ones President Trump used the law for earlier this year.

 

 

The court, however, left the tariffs in place till 14th of October to give the Trump administration time to appeal to the Supreme Court. Soon after the decision was announced yesterday, the US President denounced it as highly partisan and vowed to appeal to the Supreme Court. In a post on Truth Social, Mr Trump said, If allowed to stand, this decision will destroy the United States of America. White House Deputy Press Secretary Kush Desai said the tariffs remain in effect. 

 

 

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.