Trump’s duties are illegal for the most part. So he ruled the Washington Federal Court of Appeal by deciding on the new global rates imposed by the US President.
The decision, taken with a vote of 7 to 4, represents the hardest blow for Donald Trump, who based his election campaign and its economic and diplomatic policy on duties.
Because Trump’s duties are illegal according to the judges
The verdict is not immediately operational: it will remain suspended until 14 October 2025 to allow the Trump administration to appeal to the Supreme Court.
Trump had invoked the International Emergency Economic Powers Act (IEPA), a 1977 law designed for emergency situations, such as penalties for enemies or freezing of goods. For the president, the commercial deficit and the entry of drugs such as Fenanyl constituted a national threat.
But the judges clarified that the IEPA does not mention duties or taxes, and cannot be interpreted as an unlimited delegation. According to the sentence, imposing rates remains an exclusive power of the congress. Trump, therefore, has validated the limits of his role
Which duties are at risk and which they remain
The so -called “mutual tariffs”, the 10% duty almost universal, and the specific ones on China, Canada and Mexico will be deleted from the verdict (if confirmed). The duties on steel and aluminum will not be touched, justified with other laws.
The decision also creates uncertainty about the bilateral agreements signed with other countries, which had granted advantages to Washington in exchange for the reduction of Trumpian duties.
The question, of course, also concerns Italy. The sectors particularly affected by duties are agri -food (wine, cheeses, olive oil, pasta), fashion and luxury (clothing, footwear, accessories), precision mechanics and industrial machinery. If the duties were deleted, Italian products would return more competitive in the USA. If the appeal is rejected, Brussels could ask the United States to renegotiate bilateral agreements with more favorable conditions, also for Italian companies.
Trump’s reaction and plan B
Donald Trump defined the sentence a “partisan” and “devastating for America” decision, claiming that without duties the United States would become “financially weak”. He reiterated that the duties remain in force until the final decision and promised battle to the Supreme Court.
The case will therefore end on the table of the nine judges of the Supreme Court. The Court, today by conservative majority (6 out of 9, three appointed by Trump himself), could overturn the verdict or confirm the limits to the presidential powers.
If the Supreme Court confirmed the appeal decision, much of the duties would be canceled. For global trade it would mean a sudden change of scenario, with a possible drop in import costs and a price correction in the USA.
Until October 14, the duties remain active, but companies do not know whether to plan long -term contracts. Instability could curb investments and increase the volatility of the markets.
According to rumors, the US administration is studying alternative ways to save at least part of the rates, resorting to statutes that expressly mention the duties. A maneuver that would allow Trump to keep his protectionist doctrine standing even without the EIEPA umbrella.
