Trump Tariffs Ruled Illegal But Remain In Effect For Now

President Donald Trump began imposing tariffs on imported automobiles back in April, and since then, has been negotiating new trade deals with various countries. Meanwhile, automakers like Ford have taken measures to mitigate the impact of those tariffs, but they still cost The Blue Oval $800 million in Q2 of this year alone. Now, it’s unclear what will become of these tariffs, as a federal appeals court has ruled them illegal.

According to the Associated Press, this decision comes from the U.S. Court of Appeals for the Federal Circuit, which ruled that Trump has no legal right to impose sweeping tariffs on a variety of nations without additional approval, in a 7-4 decision. “It seems unlikely that Congress intended to … grant the President unlimited authority to impose tariffs,” the judges wrote. However, at the same time, the court didn’t put an immediate end to the tariffs, instead giving the Trump administration until mid-October to appeal its decision.

Trump responded by confirming that he does in fact intend to appeal, saying that “If allowed to stand, this decision would literally destroy the United States of America.” White House spokesman Kush Desai added that Trump has acted lawfully, saying “we look forward to ultimate victory on this matter.” If Trump’s power to impose tariffs on his own is ultimately eliminated, it would put a dent in his efforts to negotiate trade deals with other countries, and potentially remove billions of related revenue aimed at helping to offset tax cuts signed into law this past July.

One of the four judges that ruled in Trumps favor concluded that a 1977 allowing the president to make such actions in emergencies “is not an unconstitutional delegation of legislative authority under the Supreme Court’s decisions,” which could clear a legal path of sorts for the levies to continue. On the flip side, if the tariffs are ultimately ruled illegal, the U.S. may be forced to pay back some of what it has collected thus far, too.