Cargo ships loaded with containers at the Port of Los Angeles in California, US. File photo: Xinhua

A federal appeals court ruled Friday that US President Donald Trump had no legal right to impose sweeping tariffs on almost every country but left them in place for now, allowing the administration time to appeal to the Supreme Court, AP reported on Saturday. Experts say the ruling highlights the legal flaws of the US administration's tariff policy, and warn tariffs' economic damage will fuel growing opposition at home.

The ruling from US Court of Appeals for the Federal Circuit found Trump overstepped his authority under an emergency powers law, largely upheld a May decision by a specialized federal trade court in New York, according to AP.

"It seems unlikely that Congress intended to ... grant the President unlimited authority to impose tariffs," the judges wrote in a 7-4 ruling. But they did not strike down the tariffs immediately, allowing his administration time to appeal to the Supreme Court, AP reported.

Friday's 7-4 decision extends the suspense over whether Trump's tariffs will ultimately stand. The case had been expected to go to the Supreme Court for a final decision, Bloomberg reported on Saturday.

The New York-based US Court of International Trade in May blocked Trump from imposing sweeping tariffs on imports under an emergency-powers law, throwing into doubt the US sweeping tariffs that have rattled global financial markets, frustrated trade partners and raised broader fears about inflation intensifying and the economy slumping, AP reported in May.

The two US courts' rulings show that the American judicial system does not recognize the Trump administration's invocation of an emergency law to arbitrarily issue a global tariff hike, revealing that there are problems with its legal process, Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Saturday.

An attorney for small businesses affected by the tariffs said the ruling shows Trump doesn't have unlimited power to impose tariffs on his own. "This decision protects American businesses and consumers from the uncertainty and harm caused by these unlawful tariffs," said Jeffrey Schwab, director of litigation at the Liberty Justice Center, according to AP on Saturday. 

Huo Jianguo, former director of a research institute under China's Ministry of Commerce, said that the US' arbitrary tariff hikes violate WTO rules and disrupt international trade. While they may appear to bring short-term gains to the US, they will inevitably fuel inflation and increase the burden on American businesses and consumers.

US court's latest rulings declaring the tariffs illegal have added pressure on the US government. The current tariff policy is contradictory - raising duties while extending exemptions on some countries - revealing that policymakers are aware of the damage tariffs inflict on the US economy. As the impact becomes more evident, opposition from US businesses and consumers is expected to grow further, Huo noted.

Global Times