What to know about Trump's tariff plan post-court strike down
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A federal appellate court on Friday upheld a lower-court ruling that invalidated most of President Trump's global tariffs,
The big picture: The ruling could complicate Trump's efforts to change the global trade order, cutting off a major source of cash for the government and leaving businesses struggling for answers.
Driving the news: The appellate court upheld a late-May ruling that said Trump did not have the authority under the International Emergency Economic Powers Act (IEEPA) to impose tariffs.
The other side: Trump said the ruling would "literally destroy the United States of America" on Truth Social on Friday night, also promising an appeal to the Supreme Court.
- "ALL TARIFFS ARE STILL IN EFFECT!" he wrote.
Here's what to know:
What the court ruled
State of play: In a 7-4 ruling issued on Friday, the court said it did not reach a conclusion on whether the president could authorize tariffs under emergency powers, just that Trump's reasoning for the tariffs did not constitute an emergency.
- The tariffs "are unbounded in scope, amount and duration," the ruling says. They "assert an expansive authority that is ... beyond the authority delegated to the President by IEEPA."
Yes, but: the court also held its ruling through Oct. 14 to give either side time to appeal to the Supreme Court.
What the state of tariffs are
Reciprocal tariffs started at the beginning of the month after drawn-out delays.
- The tariffs ranged from 10% — the baseline rate — to 50%.
- The U.S. and China have extended their separate tariff truce for another 90 days, lowering U.S. tariffs on Chinese goods to 30% from 145% and restarting the flow of crucial rare earth minerals out of China.
- Trump's 50% tariffs on India took effect on Wednesday.
Catch up quick: Trump also raised tariffs on Canada to 35%, and extended Mexico's 25% tariff rate for 90 days.
- Brazil was hit with 50% tariffs after Trump accused its government of "politically motivated persecution" against former President Jair Bolsonaro.
Between the lines: Many countries' tariffs were reset from rates originally imposed in April to a new level of 15%, scrapping a formula that economists said was based on errors.
What the ruling means for tariffs
White House spokesman Kush Desai said in a statement that Trump "lawfully exercised the tariff powers granted to him by Congress to defend our national and economic security from foreign threats. The President's tariffs remain in effect, and we look forward to ultimate victory on this matter."
The court ruling doesn't immediately affect Trump putting an end to the "de minimis" exemption, which went into effect on Friday.
- It's an exemption that previously applied to postal shipments to the U.S. that were worth less than $800.
- Trump already ended the exemption for packages from China earlier this year, which accounted for 60% of the roughly 1.3 billion such parcels last year.
