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US President Defends Tariffs Following Appeals Court Ruling

by Daisy D.
09/01/2025
in Tariffs & Duties

Washington, D.C. — US President Donald Trump has reaffirmed his support for tariffs as a cornerstone of US trade and economic policy, responding to a federal appeals court decision that struck down several tariff measures introduced during his administration.

On Sunday, the President took to Truth Social to stress that tariffs play a critical role in maintaining the country’s economic security. He argued that revenues generated through the duties have strengthened the United States and that removing them would leave the nation vulnerable. Trump maintained that the financial resources collected through tariffs are vital for sustaining the country’s long-term economic stability and global competitiveness.

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Court Ruling on Tariff Authority

The statements followed a ruling issued on Friday by the US Court of Appeals for the Federal Circuit. In a 7–4 decision, the court determined that the tariffs in question exceeded the scope of authority granted under the International Emergency Economic Powers Act (IEEPA).

The judges concluded that the law does not permit the use of emergency powers to impose broad import duties, emphasizing that the authority to set tariffs is a power reserved for Congress under the Constitution. The court described the use of IEEPA in this context as an “unprecedented overreach of executive authority.”

While the decision affirmed an earlier lower court ruling, the appeals court also clarified that the tariffs would remain in effect until October, delaying enforcement of its judgment. This grace period provides time for the administration to seek further review, including the possibility of escalating the matter to the US Supreme Court.

Trump’s Response

In multiple posts, Trump rejected the characterization of the tariffs as unlawful, describing the appeals court as partisan in its decision-making. He insisted that the duties remain essential to the country’s financial health, stating that eliminating them would undermine economic strength and reduce the nation’s ability to compete internationally.

“Without tariffs, the United States would be at a severe disadvantage,” Trump wrote, emphasizing that the duties have already generated significant revenue. He reiterated that keeping tariffs in place is necessary to ensure the nation’s resilience against external economic pressures.

Broader Implications for Trade Policy

The ruling has drawn attention to the long-running debate over the scope of presidential powers in trade policy. Traditionally, Congress has held the authority to set tariffs and taxes, while the executive branch has used trade measures more selectively, often through negotiated agreements.

Legal experts note that the case underscores ongoing tensions between the legislative and executive branches over trade authority. Should the administration decide to appeal, the Supreme Court’s eventual decision could set an important precedent regarding the limits of executive power in shaping tariff policy.

Meanwhile, businesses and trade groups are closely monitoring developments, as tariffs remain in effect despite legal challenges. Many industries have been directly impacted by the duties, with some sectors benefiting from increased protections against foreign competition, while others face higher input costs and disruptions to supply chains.

Looking Ahead

As the October deadline approaches, the future of the contested tariffs remains uncertain. The administration has signaled that it intends to fight the ruling, while stakeholders across multiple industries await clarity on whether the tariffs will be upheld or struck down in the long term.

For now, the duties remain in place, preserving the status quo for importers, exporters, and consumers — but leaving open questions about the durability of current US trade policy and the balance of power between Congress and the presidency in tariff decisions.

#Tariffs #TradePolicy #EconomicNews #SupplyChainNews #NewsUpdate


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