Federal appellate court determines select Trump-implemented tariffs unconstitutional

In a move that has stirred controversy and sparked legal battles, U.S. President Donald Trump imposed duties on nearly every country in April, invoking trade deficits as a national emergency. This decision, however, has been met with resistance, with at least eight lawsuits challenging the tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

The U.S. Court of International Trade ruled in May that Trump does not have the authority to wield tariffs on nearly every country using IEEPA. The United States Court of Appeals later declared these tariffs illegal, meaning they must be lifted immediately. However, the government has been given until mid-October to appeal to the Supreme Court, so the tariffs currently remain in effect pending that process.

One of the most affected countries is Canada, whose tariffs on imported goods under Trump increased to 35 per cent in August. Despite recent talks between Canada-U.S. Trade Minister Dominic LeBlanc and U.S. Commerce Secretary Howard Lutnick in Washington, significant tariffs remain in place, even for countries with so-called trade deals.

The White House justified the increase, citing the issue of fentanyl and retaliatory tariffs. However, it's worth noting that a minuscule volume of fentanyl is seized at the northern border.

If the tariffs are struck down, the Trump administration may have to refund some import taxes, with revenue from tariffs now totalling $159 billion. Ottawa is seeking a bilateral agreement to ease pressures from tariffs on steel, aluminum, copper, and automobiles.

Trump has warned that if the tariffs are not lifted, it could lead to another Great Depression. The administration has appealed the lower court's ruling, and the case may be brought to the Supreme Court.

This complex situation underscores the ongoing tension between trade policies and international relations, a theme that continues to dominate the global economic landscape.

Federal appellate court determines select Trump-implemented tariffs unconstitutional