Appeals court strikes down Trump’s tariffs as illegal but leaves them in place

illuminem summarises for you the essential news of the day. Read the full piece on The Washington Post or enjoy below:

🗞️ Driving the news: A U.S. federal appeals court has ruled that former President Donald Trump lacked the legal authority to impose most of his sweeping tariffs, declaring them illegal under the 1977 International Emergency Economic Powers Act (IEEPA)
• The 7-4 decision asserts that IEEPA does not grant the president the power to impose taxes or tariffs without explicit congressional authorization
• Despite the ruling, the tariffs will remain in effect pending a likely appeal to the U.S. Supreme Court

🔭 The context: The tariffs, a key component of Trump’s trade policy, were imposed unilaterally during his first term, targeting dozens of countries amid claims of national economic emergency
• Trump justified the move using IEEPA, a law traditionally applied in cases of national security threats
• The lawsuit challenging the tariffs was brought by small businesses and state governments, who argued there was no legitimate emergency to justify such sweeping trade actions

🌍 Why it matters for the planet: This ruling could have significant implications for global trade governance, regulatory accountability, and economic diplomacy
• A rollback of these tariffs could ease trade tensions, lower consumer prices, and potentially improve international cooperation on climate-linked trade reforms such as carbon border adjustments
• However, prolonged legal uncertainty may delay reforms and perpetuate unstable global trade conditions.

⏭️ What's next: The Biden administration, through Attorney General Pam Bondi, has confirmed it will appeal the decision to the Supreme Court
• If the high court upholds the ruling, it could force a rollback of Trump-era tariffs and reshape executive authority over trade
• The lower courts will assess whether businesses affected by the tariffs are entitled to financial redress. Trade partners and markets are likely to remain cautious as the legal process unfolds into 2026.

💬 One quote: “The President cannot lawfully impose tariffs on his own; and IEEPA does not give him unlimited unilateral tariff authority.” – Jeffrey Schwab, Liberty Justice Center

📈 One stat: U.S. manufacturing jobs have declined steadily since 1979, with automation—not trade deficits—being the dominant cause, according to economists

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