Are Trump tariffs going to end after US court decision?

Dubai: A court in the US has deemed sweeping tariffs imposed by President Trump as 'illegal'.

This ruling will now be taken up by the US Supreme Court where the government will contest the verdict by the lower court.

For now, the tariffs will remain in place until October 14.

The US and other global markets are closed for the weekend, and investors have to wait until Monday (September 1) to decide what they make of the new court decision.

The US markets ended slightly lower from fresh highs attained through the week. Investors had been more fixated on the expected interest rate cuts in mid-September than on tariffs. The new US court verdict could change that.

Trump was quick to respond to the court ruling with a post on Truth Social - "Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end,"

It was April that President Trump announced major changes in the way the US trades with the rest of the world. Higher tariffs on imports into the US were imposed, which Trump says are needed to cut the US trade deficit and also bring down unfair advantages that some of the US trade partners have been getting.

It was the US Court of Appeal for the Federal Circuit that passed the judgement. In its ruling the court said that the US President does not have the right under emergency economic powers to impose tariffs unilaterally. Instead, it would be up to the US Congress to decide on tariffs.

The Court of Appeal went on to say that what Trump has imposed as 'invalid'.

US reaches deals with key partners

In recent weeks, the US had struck tariff deals with major trade partners, including the EU, Japan and South Korea. Tariffs on the UAE and Saudi Arabia were pegged at 10%.

India was hit with a double blow with tariffs set at 50%. This went into effect on August 27. The Indian rupee fell to a new all-time low on Friday (August 29).

Brazil and South Africa too were targetted with higher tariffs.