The appellate court was divided with a majority of 7 votes to 4, in a landmark decision stating that the tariffs imposed by former President Donald Trump are illegal. The court has given the U.S. administration until mid-October to appeal to the Supreme Court in a case that holds broad implications for the U.S. economy and its international trade relations.
If the Supreme Court upholds the appellate court's decision, it could lead to a state of uncertainty in financial markets and raise questions about whether the United States would have to return billions of dollars collected from import taxes on imported products. The world may also witness questions regarding the commitment of major economies – such as the United Kingdom, Japan, and South Korea – to the individual trade agreements they made with the United States before the deadline in August, with the potential for chaos to dominate ongoing negotiations for new trade agreements.
Politically, if the Supreme Court upholds the decision, it would be a significant blow to Trump's authority and reputation as a dealmaker; however, if it overturns it, the effect would be the opposite, preserving his legacy in the business realm.
Are the tariffs still in effect?
The current ruling pertains to the reciprocal tariffs imposed by Trump, which include a range of different rates on most countries, including China, Mexico, and Canada. These tariffs will remain in effect on most imported goods to the United States until mid-October, according to the court. After October 14, these tariffs will no longer be enforceable.
On the other hand, the tariffs imposed on steel, aluminum, and copper, which were enacted under a different presidential authority, will remain in place and will not be affected by the appellate court ruling.
