The U.S. Court of Appeals issued a 7-4 decision upholding a lower court finding that the global tariffs were illegally imposed under an emergency statute. The panel left the tariffs in place while the case proceeds and indicated any injunction might be narrowed to affected plaintiffs. The litigation was filed by Democratic-led states and small businesses and involves trillions of dollars of global trade. A final adverse ruling could force the government to refund hundreds of billions in duties. The administration can appeal to the Supreme Court or seek a narrowed remedy from the trade court.
The legal fight over President Donald Trump's global tariffs is deepening after a federal appeals court ruled the levies were issued illegally under an emergency law, extending the chaos in global trade. A 7-4 decision by a panel of judges Friday night in Washington was a major setback for Trump even as it gives both sides something to boast about.
It's unclear exactly where the case goes from here. The Trump administration could quickly appeal the ruling to the Supreme Court, or it could allow the trade court to revisit the matter and potentially narrow the injunction against his tariffs. "Our trading partners must be dazed and confused," Wendy Cutler, a senior vice president at the Asia Society Policy Institute and veteran US trade negotiator, wrote in a post on LinkedIn. "Many of them entered into framework deals with us and some are still negotiating."
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