Tariffs: the US Court of Appeals has rejected them, but they are still in place, for the moment

The matter of Trump’s US tariffs, currently 15% on all EU products, including wine, more and more resembles an economic and legal thriller affair that has constant twists and turns. Just a few days after the new tariff regime between the US and the EU went into effect (the Ministry of Foreign Affairs has requested clarification on the duties applied to products such as Parmigiano Reggiano and Grana Padano, which risk having to pay double tariffs, and postal services across Europe are also awaiting clarification on the case that is effectively blocking the shipment of small parcels to the States), news arrived during the last weekend in August that the United States Court of Appeals for the Federal Circuit has in effect upheld the illegality of the tariffs, as it had confirmed at the end of May, following the appeal against the tariffs filed by several companies in 12 American states, including, from the wine world, New York-based VOS Selections. VOS Selections has consistently been at the forefront of opposition to tariffs, and in favor of wine trade free from tariffs and duties. Or rather, not the illegitimate nature of the tariffs, but the illegitimate nature of the procedure used. Following the White House’s first appeal, the Court reiterated the International Emergency Economic Powers Act (IEEPA, the law that allows the application of duties and tariffs, among other things,) “does not grant the President the authority to impose such broad tariffs, reaffirming that the power to apply tariffs belongs to Congress”, as the United States Wine Trade Alliance also explained. So, does that mean it is all over? No, because “the court also temporarily stayed its ruling until mid-October, meaning tariffs remain in place for the moment, while the administration appeals. The administration has made it clear that it intends to seek a review by the Supreme Court. If the Court agrees to hear the case this fall”, USWTA added, “ discussions would likely be held early next year, and a decision would be expected by late spring or summer 2026. In the meantime, it is likely that the White House will push for emergency relief to keep the tariffs in place beyond October. It might also invoke other authorities, such as Section 232 for National security, Section 301 for unfair trade practices, or Section 122 of the 1974 Trade Act, which allows for a temporary 15 percent surcharge on imports”.
The US Wine Trade Alliance explained, “the risk of tariffs remains a real factor for the wine sector. The IEEPA law that the President has used to introduce the current tariffs is weak and the Supreme Court could overturn its implementation, though we do not believe the Courts will ultimately save our industry from tariff-related threats. The President has a variety of other tools to be used to impose tariffs, should he wish, making it critical to demonstrate the importance of imported wine to the US economy, to the Executive branch”. Furthermore, as has been reported several times, according to USWTA estimates, “wine imported from the European Union fuels a huge American economic engine. European Union wine generates approximately 23.96 billion US dollars in revenue annually in the United States, while only 5.3 billion US dollars returns to Europe. This leaves an economic surplus of nearly 19 billion US dollars here in the United States, which consequently supports hundreds of thousands of American jobs in all 50 states, including importers, distributors, retailers, and restaurants”.
Trump is not willing to back down, however, as the comment he posted on his social media account "Truth," and shared through the official "X" account of the President of the United States, as well as that of the White House, clearly states, “without the tariffs, and without the trillions of dollars we have already collected, our country would be completely destroyed and our military might would be instantly annihilated. With a vote of 7 to 4, a group of Radical Left judges did not care, but a Democrat, appointed by Obama, instead voted to save our country. I would like to thank him for his courage! He loves and respects the United States”.