Court Challenges Trump Tariffs, Setting Stage for Supreme Court Showdown

A U.S. appeals court ruled many of Trump's tariffs illegal, challenging his economic policy strategy. The decision may escalate to the Supreme Court as Trump defends tariffs critical to his international stance, raising uncertainties in trade markets. The tariffs under IEEPA have sparked legal and political debates.

A divided U.S. appeals court has ruled that the majority of tariffs imposed by former President Donald Trump are illegal, undercutting a key component of his economic policy. However, the court will allow the tariffs to remain in effect until October 14, providing the Trump administration an opportunity to appeal to the U.S. Supreme Court.

The decision arrives amidst a broader legal battle, which includes issues surrounding the Federal Reserve's independence, creating a pivotal year for Trump's economic policies. These tariffs, critical to U.S. foreign policy, were used to exert political pressure and renegotiate trade deals.

The ruling has stirred concerns of market volatility while potentially escalating legal tensions. Trump's administration leveraged tariffs to gain concessions from trading partners, but changes in their legality could lead to greater economic uncertainty.

(With inputs from agencies.)