US Court Declares Trump's 50% Tariff Illegal: A Landmark Ruling

Court Ruling on Trump's Tariff

In a significant legal development, a federal court in the United States has deemed Donald Trump's 50 percent tariff unlawful. On Friday, the US Court of Appeals for the Federal Circuit determined that Trump overstepped his authority by declaring national emergencies to impose extensive import taxes on nearly all nations. This ruling largely supports a previous decision made by a specialized federal trade court in New York from May. However, the 7-4 decision by the appeals court reversed the earlier ruling's immediate termination of the tariffs, allowing the administration time to seek an appeal from the US Supreme Court. The involvement of a notable lawyer in this case adds further importance to the court's decision.

Impact on Indian Exporters

This ruling holds considerable implications for Indian exporters, who have been adversely affected by the 50% tariff. Neal Katyal, an American lawyer of Indian descent, played a pivotal role in challenging Trump's authority to impose these tariffs in court.

Who is Neal Katyal?

Neal Kumar Katyal is a distinguished American attorney and legal scholar, born to Indian parents—his father, Surendra Katyal, was an engineer, and his mother, Pratibha Katyal, was a physician. He has an impressive legal background, having served as the Acting Solicitor General of the United States during Barack Obama's presidency. In this recent case, Katyal represented a coalition of small businesses and Democratic-led states contesting Trump's tariffs. He argued that the President lacks the unilateral authority to impose economic policies, a power that resides with Congress. The court accepted his arguments, ruling against Trump. The Federal Circuit Court of Appeals in Washington announced its decision on Friday with a 7-4 majority, asserting that Trump had exceeded his authority by invoking emergency powers to impose tariffs. According to the US Constitution, only Congress has the authority to levy tariffs or taxes, not the President. Although Trump referenced the International Economic Emergency Powers Act (IEEPA) to justify the tariffs, the court concluded that the act does not grant the President explicit authority to do so. Nevertheless, the court has postponed the enforcement of its ruling until October 14, allowing the Trump administration time to appeal to the US Supreme Court.