According to the Global Times, the iconic trade agenda of U.S. President Trump has recently suffered a major judicial failure.On August 29, local time, a U.S. Federal Court of Appeal ruled that after the Trump administration returned to the White House in January this year, citing most of the global tariffs imposed by the International Emergency Economic Power Act as illegal.

The ruling was made by the U.S. Federal Circuit Court of Appeal in Washington, D.C. The judges upheld the original ruling of the U.S. International Trade Court in May this year with seven votes against four.

Trump declined to acknowledge the outcome and announced that he would appeal to the Supreme Court.

U.S. President Trump looks at China

U.S. Court of Appeal: President overpowers

Trump to appeal to U.S. Supreme Court

According to the ruling, ¡°tariffs are a tax¡± and the U.S. Constitution stipulates that ¡°tax collection, tariffs, import and consumption taxes¡± and the ¡°management of business transactions with foreign countries¡± are all conferred on the legislature of Congress. The Trump administration bypassed Congress, citing the International Emergency Economic Power Act as a state of emergency, which the court believed exceeded the authority granted by the bill.

The judges allowed these tariffs to provisionally remain in force until October 14, which gave the Trump administration time to appeal to the Supreme Court.

After the ruling was announced, Trump responded quickly on social media platforms, calling the court ¡°highly partisan¡± and declaring the ruling a ¡°catastrophe for the United States¡± and ¡°will completely destroy the United States if it is allowed.¡±

On August 31, Trump reiterated that the United States would be ¡°completely destroyed¡± if ¡°trillions of dollars¡± of revenue were to be generated without tariffs.

According to the US Treasury Department data, the Trump administration¡¯s tariff revenue has reached $183.1 billion since this fiscal year. In the United States, the federal government¡¯s fiscal year starts on October 1 of each year and ends on September 30 of the following year. U.S. Treasury Secretary Bessent has said that the government can use part of the tariff revenue to repay U.S. bonds (up to $37.2 trillion).

White House trade adviser Navarro looks at China

According to reports, White House trade adviser Navarro called the judges who will make the verdict on August 31 ¡°politicians in black robes.¡± he also expressed confidence in ¡°a victory in the Supreme Court,¡± noting that the objections raised by the opposing judges were ¡°very, very strong,¡± ¡°this provides a very clear route for how the Supreme Court could make a decision in our favor,¡± Navarro also warned that if the case failed, ¡°the United States would be done.¡±

Do U.S. trade agreements still have legal effect?

The ruling raises an inevitable question: Do previous trade agreements between many countries and the United States still have legal effect?

At present, several countries and regions are under the influence of Trump tariff policy. According to the Global Times report citing information from China Thailand Securities Statistics, at present the United States has announced that it has reached trade agreements with the United Kingdom, Vietnam, Indonesia, the Philippines, South Korea, Japan, the European Union and other countries and regions, but the announcement is a summary of the trade agreement, the final agreement will still be announced after the details. In addition, the United States has not reached a trade agreement with China, Brazil, India and other major trading partners due to the existence of differences.

U.S. Treasury Secretary Bessent and U.S. Secretary of State Rubio have warned that if the president's tariff policy is ruled illegal, it will "create serious diplomatic embarrassment", putting months of negotiations with regions such as the European Union, Japan and South Korea in the east, and potentially prompting other countries to take retaliatory measures. U.S. Commerce Secretary Lutnik said the ruling would "send a signal to the world that the United States lacks determination to defend its own economy and national security."

On August 31, news came out that Trump wanted to get the manufacturing industry back to the U.S. plan, it appears to be producing outcomes.

According to reports, Trump¡¯s tariff policy is repeatedly unregular, leaving many American companies operating in non-native regions unwilling to be lenient. Stephen Lamar, president of the American Clothing and Shoe Association, said because Trump could impose tariffs on other countries at any time.

Red Star reporter Deng Xiaoyu, Global Times

Edited by Guo

Extended reading

Media: Trump has gotten a step forward, Mexico's female president can't stand it soon

After months of negotiations and concessions, Mexican President Simbo finds himself caught up in a cycle of pressure from the White House.

The Mexican president, known as the "Trump interpreter", has repeatedly defused tense negotiations with Trump. Even Trump called out "I like her a lot" and repeatedly extended the buffer period for tariffs on Mexico.

But this "honeymoon period" seems to be coming to an end.

Trump pushed his luck, but Sinbaum couldn't take it anymore.

In a long article published on August 30, the New York Times revealed the difficulties Symphony faced.

Deploying tens of thousands of soldiers to the U.S. -Mexico border; accusing Mexican banks of money laundering; threatening to increase tariffs; revoking the visas of some Mexican politicians; listing some Mexican drug cartels as terrorist organizations... In the past few months, Trump has stepped up his high-pressure offensive against Mexico, using multiple means to force Sinbaum to give in, leaving her on the defensive, with little room for maneuver.

On August 29, Mexican President Shinbaum said she would seek a U.S.-Mexico deal while ensuring respect for Mexico's sovereignty and the principle of non-interference in its territory

In every confrontation with Trump, Shenbaum gritted his teeth and emphasized that there is an insurmountable red line, that is, the violation of Mexico's sovereignty, especially unilateral military action.

However, news broke this month that Trump secretly signed an executive order allowing the use of military force to fight Latin American drug cartels classified as "foreign terrorist organizations."

"There will be no intrusion," Mr. Sheenbaum said at the time, responding to concerns. "That has been ruled out."

Four days later, her government further complied with additional U.S. demands and handed over 26 people accused of being members of a senior drug cartel to the United States. This is the second such transfer this year, with a total of 55 people, none of whom are subject to normal extradition procedures.

Two days later, Trump told reporters that because of him, Mexico finally respected the United States again. He said triumphantly: "Mexico will do as we say."

According to four people close to the Mexican government, Simbaum has felt very upset.She and the cabinet felt that they had spent a lot of energy on meeting Washington¡¯s demands, but it never seemed enough.

Since Sheinbaum took office nine months ago, the Mexican government has stepped up its crackdown on powerful drug cartels, arresting 30,000 people accused of committing "major crimes." By contrast, her predecessor only arrested 12,300 people in six years.

During her tenure, murders declined, drug seizures increased, and illegal border crossings all but stagnated.

However, the United States still complains that the Mexican government has shown dysfunction and hesitation in fighting the drug issue.

For example, in July this year, a man man managed to escape under Mexican surveillance while waiting for extradition to the United States in Mexico.

The White House then again called on Mexico to step up its struggle, and Trump threatened to impose a new 30% tariff on Mexican imports.

Simboom once again sought a tariff extension through negotiations.

After the two presidents spoke, Trump suspended planned tariffs for 90 days, saying the two sides would seek a trade agreement. Trump wrote on social media that the conversation was "very successful because we got to know each other more and more."

But tensions rose again last week when the US announced that the US and Mexican governments would undertake "bold bilateral action" against drug cartels.

Simbaum then replied that he was unaware of this.

She said the U.S. has only trained four Mexican drug detectives, and she has criticized the U.S. for exaggerating its cooperation in several press conferences.

A source close to Sinbaum's administration said the two countries had actually agreed on a joint operation and intelligence-sharing plan, while stipulating that the operation must respect Mexican sovereignty. Sinbaum plans to meet with visiting U.S. Secretary of State Rubio in the next week.

Lila Abed, a former Mexican official who is now director of the Mexico program at the Inter-American Dialogue in Washington, said Singbaum's situation is extremely difficult.

"The problem is that there is no clear standard for measuring whether Mexico is doing enough," she said."President Trump and his team can indeed change the rules at any time."

All negotiations are faced with a reality: the Mexican economy is centered on the United States, with cross-border trade between the two countries reaching $1.2 million per minute, according to Mexican data.

"Does Sheinbaum still have a choice?" Abed said. "For the future of her government, if it doesn't, it may be worse."