The US declared a 'national emergency' due to long-term trade deficits. But the court concluded that setting customs duty is not within the mandate of the President.
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With the implementation of 50 percent tariff (customs tax) in India, there is widespread criticism, the US Court of Appeals has ruled that the tariff rate issued by President Donald Trump is illegal. According to international media, on Friday, the Federal Court of Appeal in Washington, DC declared that the customs tax imposed by Trump was illegal.
Trump last April imposed basic tariffs of up to 50 percent on countries with US trade deficits and 10 percent on other countries. Trump imposed tariffs under the International Emergency Economic Powers Act of 1977 without the approval of the US Congress.
The US declared a 'national emergency' due to long-term trade deficits. But the court concluded that setting customs duty is not within the mandate of the President.
In a 7-4 majority (judge) decision, the BBC reports that President Trump's argument that the Emergency Economic Authorization Act allows him to impose tariffs is "invalid". The 127-page ruling "neither mentions tariffs (or similar terms), nor mentions any procedural safeguards that the President would have to implement tariffs."
However, the Trump administration has a chance to appeal to the US Supreme Court. Until October 14, these taxes can be kept as they are.
Trump has criticized the decision and argued that America should suffer the consequences. "If upheld, this decision will 'literally' destroy the United States of America," he wrote on the social media site Truth. It will weaken us economically .'
affect America ?
Trump used tariffs as a major weapon in international economic policy. But with this order, advocates say that there may be an economic crisis in America.
According to the BBC, before the verdict, the lawyers of the White House claimed that if the tariff was declared invalid, it would lead to financial destruction like in 1929. The lawyer wrote in the letter - 'Suddenly withdrawing the tariff authority granted to the President under the IEEPA will have devastating consequences on national security, foreign policy and the economy.' According to
analysts, if the US Supreme Court upholds this decision, the US may have to return the funds raised until last July. This may cause financial burden on them . But even if the appeals court defeats Trump, the White House is confident that the Supreme Court will overturn this decision.
According to BBC, six Supreme Court judges were appointed by Republicans, three of whom were appointed by Trump himself. That's why he can reverse this decision in the Supreme Court.
– with the help of agencies
