A United States Court of Appeals ruled on Friday that most Donald Trump’s tariffs are illegalwhich undermines the use that the Republican President makes of the taxes as a key tool of international economic policy.
Trump has turned tariffs into a pillar of American foreign policy in his second termusing them to exercise political pressure and renegotiate trade agreements with countries that export products to the United States.
Tariffs have given the federal government influence to obtain economic concessions from their partners commercials, but they have also increased the volatility of financial markets.
The decision of the United States Court of Appeals for the Federal Circuit in Washington, DC, addressed the legality of what Trump calls “reciprocal” tariffs imposed as part of its commercial war in April, as well as a separate set of tariffs imposed in February against China, Canada and Mexico.
The Court’s decision does not affect tariffs issued under another legal authority, such as steel and aluminum imports.
The case is expected to be appealed to the United States Supreme Court.
