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Court Ruling Shakes U.S. Tariff Policy, Sparks Global Trade Turmoil
A major legal blow has cast doubt over the future of the United States’ sweeping tariff program, a cornerstone of its recent trade strategy. On August 29, the U.S. Court of Appeals for the Federal Circuit ruled 7–4 that the administration had overstepped presidential powers by using emergency authorities under the International Emergency Economic Powers Act (IEEPA) to impose broad import levies.
The decision follows similar rulings from lower courts, which deemed the emergency-based tariffs “unlawful as to all” and stripped the president of independent discretion to alter them. While the measures remain in place pending appeal, the administration has vowed to take the fight to the Supreme Court.
The legal uncertainty comes amid escalating trade tensions with India, now facing a 50% tariff wall on $60 billion of its exports to the U.S., prompting New Delhi to diversify trade to 40 new markets. Economists warn that the dispute could deepen supply chain disruptions and push global trade into uncharted territory, with average U.S. tariff rates at their highest since the Great Depression.
If the Supreme Court upholds the lower court rulings, it could force a dramatic rollback of current tariffs — reshaping not only U.S. trade policy but also the balance of global commerce.
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