Washington: A United States federal appeals court on Friday rejected President Donald Trump's claim that emergency powers authorized him to impose tariffs on America's trading partners, delivering a setback to his efforts to reshape global trade. According to Kuwait News Agency, in a seven-four decision, the court upheld a lower court ruling that determined the law cited by Trump did not authorize the imposition of such tariffs. The court, comprised of one republican judge and six democratic, stated that the International Emergency Economic Powers Act (IEEPA) permits the president to issue targeted economic sanctions to address "an unusual and extraordinary threat" during a national emergency, but does not grant authority for sweeping trade actions. The law grants the president authority to regulate imports, not to impose tariffs through executive orders, the court stated. It further affirmed that the power to levy tariffs lies exclusively with the legislative branch under the US Constitution, emphasizing t hat it is a fundamental power reserved to Congress. The ruling will not take effect until October 14, giving the Trump administration time to appeal the case to the Supreme Court. Responding to the ruling, President Trump posted on his Truth Social platform asserting all tariffs remain in place. Trump described the court as "highly partisan," adding, "If these Tariffs ever went away, it would be a total disaster for the Country." He called tariffs the best tool to help workers, and support local companies and manufacturers. On April 2, President Trump had signed an executive order imposing "reciprocal" tariffs on most countries around the world. Earlier this week, US Treasury Secretary Scott Bessent predicted a significant surge in tariff revenues, potentially exceeding USD 500 billion annually, as a result of the new tariffs introduced by President Trump.
