FAQ

The US president lacked the authority: A US court has overturned several of the tariffs imposed by Trump. What are the consequences of this decision? Questions and answers.

What did the court find?

An appeals court has declared some of the import tariffs imposed by US President Donald Trump illegal. The judges at the federal court in Washington, which is responsible for trade issues, among other things, upheld the illegality of the tariffs by a vote of seven to four, which had already been determined in the first instance. However, the focus here is primarily on Trump's actions.

How does the court justify its decision?

Trump invoked a 1977 emergency law, the International Emergency Economic Powers Act (IEEPA), in imposing the tariffs. The appeals court now ruled that while this law grants the U.S. president"broad powers" to respond to a "declared national emergency," the judges emphasized that tariffs are a core competence of the U.S. Congress.

It is"unlikely that Congress, in enacting IEEPA, intended to depart from its previous practice and grant the President unlimited tariff authority," the ruling said.

Which tariffs are involved?

The ruling affects the punitive tariffs that Trump imposed on numerous countries starting in early April. However, the ruling does not apply to industry-specific tariffs such as the surcharges on aluminum, steel, and car imports.

How did Trump react?

The US President took a combative stance on his online service, Truth Social. He accused the federal judges of making an"extremely partisan decision." If these tariffs were repealed, it would be a total catastrophe for the country, Trump wrote. He would save the tariffs with the help of the Supreme Court. If the appeals court's decision stands, it would"destroy" the USA, Trump said.

How does the US government intend to proceed now?

The Trump administration intends to take the case to the Supreme Court. U.S. Attorney General Pam Bondi confirmed this on the online service X. Her office will appeal to"restore the President's legitimate authority," Bondi stated. Trump hopes that the Supreme Court's roster, which shifted to the right during his first term, will rule in his favor.

What could be in store for Trump?

A ruling to lift the tariffs would be a severe setback for Trump's trade policy. He wants to use the tariffs to shrink the trade deficit, create jobs, and generate government revenue.

Trump had already used the tariffs to reach trade agreements with several countries, including the EU. Part of the agreements stipulates that these partners would open their markets more to US products. However, Trump also uses the tariffs as a punishment and as a means of exerting political pressure, for example against Brazil or India, whose tariffs he doubled a few days ago.

Has the EU responded to the decision?

The EU Commission initially declined to comment on the ruling. A spokesperson said the Commission would continue working on implementing the agreements with the US. The EU Commission launched the legislative process on Thursday to eliminate tariffs on US industrial goods and lower barriers to the import of certain food products. In return, US tariffs on car imports from Germany and other countries will be reduced.

Does the decision have an impact on Germany?

A 15 percent tariff has been in effect since August 7 for most products imported into the US from Germany and other EU countries. This is the result of an agreement reached between the Trump administration and the EU after tough negotiations. It is unclear exactly how the judges' decision might affect this.

What happens next?

The tariffs remain in effect for the time being; the judges left them in place until mid-October to allow for an appeal to the Supreme Court. Several other lawsuits against the tariffs are currently pending, including those filed by US states and companies.