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Trump’s decision to impose tariffs illegal: US court

nabil bank

Washington. Us President Donald Trump’s global customs duties have been declared illegal by a US court. In a 7-4 majority ruling on Friday, the court made it clear that Trump had abused emergency economic authority and imposed tariffs beyond the legal limits.

While the charges do not need to be removed immediately, the court said they will remain in place only until October. This gives Trump time to appeal to the Supreme Court.

After starting his re-election in January 2025, Trump used the International Emergency Economic Rights Act (IEPA) to impose reciprocal customs duties on most trading partners. The initial rate of these fees was 10 percent, while in some countries the rate was even higher.

He also imposed separate tariffs on Mexico, Canada and China to curb drug trafficking. However, the court’s decision said, “The President has the right to take various steps after declaring a state of emergency, but that power does not cover the imposition of customs duties or taxes.” ’

The ruling will have serious implications for Trump’s trade and economic policies. If the Supreme Court also declares such fees illegal, billions of dollars raised in the last few years may have to be returned to the government.

After the verdict, Trump responded on his social network Truth Social, saying, “The court has made a wrong decision, but ultimately America will win.” He threatened to fight the case in the Supreme Court.

According to analysts, the decision has also created confusion over agreements with major trading partners, including the European Union.

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