Judicial Showdown: Trump's Contested Tariffs Reach the Courts

A federal appeals panel expressed doubt over U.S. President Donald Trump's justification for tariffs based on a 1977 law originally meant for sanctioning enemies. This pivotal legal case is expected to progress to the U.S. Supreme Court.

The case challenges the tariffs Trump imposed on various trading partners, emphasizing the power granted by the International Emergency Economic Powers Act. While the government defends that declining manufacturing and drug flow justify these measures, opponents counter that the U.S. Constitution delegates tariff authority to Congress.

Should Trump lose, it could lead to widespread refund claims by importers and affect Trump's future trade negotiations. Despite this, mechanisms like the 1962 law may still allow tariff impositions without falling under current legal scrutiny.

(With inputs from agencies.)