NATIONAL NEWS - In a landmark decision, the US Court of International Trade has declared President Donald Trump’s sweeping tariffs, imposed earlier this year, illegal, dealing a significant blow to his economic agenda.

The ruling, handed down on Wednesday 28 May, found that Trump overstepped his authority by invoking the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs on imports from nearly every US trading partner, including a 10% baseline duty and higher levies on countries like China, Canada, and Mexico. 

This decision has far-reaching implications for global trade, including for South Africa.

The court’s three-judge panel, based in Manhattan, ruled that the US Constitution grants Congress exclusive authority to regulate commerce, and the IEEPA does not permit the president to impose tariffs unilaterally. 

The judges also struck down specific tariffs targeting Canada, Mexico, and China, which Trump justified as measures to combat fentanyl trafficking and trade imbalances. 

The court argued these tariffs did not directly address the cited emergencies, rendering them invalid. 

The ruling halts the 10% universal tariff, 30% tariffs on China, and 25% tariffs on Canada and Mexico, though existing levies on steel, aluminum and autos under separate laws remain unaffected.

South Africa, which exports significant amounts of metals, agricultural products, and vehicles to the US, stands to benefit from the ruling.

Local exporters faced increased costs and uncertainty due to Trump’s “Liberation Day” tariffs announced on 2 April.

However, the Trump administration has already appealed to the U.S. Court of Appeals for the Federal Circuit, signaling a protracted legal battle.

Global markets reacted positively, with US stock futures surging, reflecting investor relief. 

For South Africa, the ruling could ease pressure on export-driven industries, but analysts warn of potential disruptions if the appeal overturns the decision.

The ruling also sparked debate on X, with users noting its impact on Trump’s trade war strategy.

This article was compiled with the help of Grok on X, using Reuters, Bloomberg and The New York Times as sources.

‘We bring you the latest Garden Route, Hessequa, Karoo news’