In a landmark legal decision with significant ramifications for US trade policy, a federal appeals court has struck down a core component of former President Donald Trump's economic agenda. The ruling declares that the tariffs his administration levied on steel imports were unlawful.
The case, brought by a coalition of American businesses that import foreign steel, centred on the controversial use of Section 232 of the Trade Expansion Act of 1962. The Trump administration had invoked this clause, which is typically reserved for genuine national security threats, to justify imposing a 25% tax on steel from numerous countries.
A Question of National Security or Overreach?
The three-judge panel from the Court of Appeals for the Federal Circuit unanimously found that the government's interpretation of the law was fundamentally flawed. The judges stated that the term 'national security' in the statute does not grant the president an unlimited, un-reviewable power to manipulate trade.
"The government's broad and unchecked interpretation of Section 232 would efface the statute's plain language and its structural constraints," the court wrote in its opinion. This challenges the notion that such executive power is immune from judicial scrutiny.
Implications for the Biden Administration and Beyond
While the ruling directly targets tariffs enacted under Trump, its impact is immediate. The Biden administration, which has largely kept these particular tariffs in place, must now navigate the legal fallout. The decision opens the door for hundreds of companies that paid the duties to potentially file lawsuits to reclaim billions of dollars.
This verdict sends a powerful message to the White House, current and future, that the judiciary will serve as a check on trade powers, ensuring they are used within the legal boundaries intended by Congress and not as a blanket tool for economic protectionism.
