‘Diplomatic embarrassment’: Trump cabinet tried to delay court ruling on US tariffs - Here’s what they told judges

Trump Cabinet members tried to delay court ruling that declared US reciprocal tariffs illegal

In a significant diplomatic setback for US President Donald Trump, a federal appeals court has ruled that the majority of his global tariffs are unlawful. The court rejected his administration's reliance on emergency powers to justify the duties, delivering a blow to his trade policy agenda.

Just hours before the decision, key members of Trump’s Cabinet submitted urgent statements to the court, warning of serious repercussions on US foreign policy, the Bloomberg report mentioned.

According to Bloomberg, Treasury Secretary Scott Bessnet cautioned of a “dangerous diplomatic embarrassment.” At the same time, Commerce Secretary Howard Lutnick argued that a ruling against the administration would result in “devastating and dire consequences.”

“Suspending the effectiveness of the tariffs would expose the United States to the risk of retaliation by other countries based on a perception that the United States lacks the capacity to respond rapidly to retaliation,” Bessent added.

Despite the effort to delay or influence the outcome, the court’s decision has reportedly left Washington diplomatically embarrassed.

The 7-4 decision from the US Court of Appeals for the Federal Circuit in Washington, DC, addressed the legality of what Trump calls “reciprocal” tariffs imposed as part of his trade war in April, as well as a separate set of tariffs imposed in February against China, Canada, and Mexico.

The court ruled that the International Emergency Economic Powers Act (IEEPA) does not allow the president to levy tariffs.

“The statute bestows significant authority on the President to undertake several actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax,” the court said.

The lawsuits were brought by small businesses and a coalition of Democratic-led states, who argued that tariff power rests with Congress. The New York-based US Court of International Trade had already ruled against Trump’s tariffs in May, finding he had exceeded his authority.