Ƶ

Elon Musk came to Washington wielding a chain saw. He leaves behind upheaval and unmet expectations

Elon Musk came to Washington wielding a chain saw. He leaves behind upheaval and unmet expectations
Elon Musk holds up a chainsaw he received from Argentina's President Javier Milei, right, as they arrive to speak at the Conservative Political Action Conference on Feb. 20, 2025, in Oxon Hill, Maryland. (AP Photo/File)
Short Url
Updated 30 May 2025

Elon Musk came to Washington wielding a chain saw. He leaves behind upheaval and unmet expectations

Elon Musk came to Washington wielding a chain saw. He leaves behind upheaval and unmet expectations
  • The world’s richest person got a seat at Trump’s table and put $250 million behind his campaign
  • He was suddenly everywhere — in Cabinet meetings, sleeping in the White House, or with his young son in the Oval Office
  • “They made some changes without really knowing what they were doing... they set themselves up for failure,” says think tank exec

WASHINGTON: Elon Musk arrived in the nation’s capital with the chain saw-wielding swagger of a tech titan who had never met a problem he couldn’t solve with lots of money, long hours or a well-calibrated algorithm.
President Donald Trump was delighted to have the world’s richest person — and a top campaign donor — working in his administration, talking about how he was “a smart guy” who “really cares for our country.”
Musk was suddenly everywhere — holding forth in Cabinet meetings while wearing a “tech support” shirt and black MAGA hat, hoisting his young son on his shoulders in the Oval Office, flying aboard Air Force One, sleeping in the White House. Democrats described the billionaire entrepreneur as Trump’s “co-president,” and senior officials bristled at his imperial approach to overhauling the federal government.
After establishing Tesla as a premier electric automaker, building rockets at SpaceX and reshaping the social media landscape by buying Twitter, Musk was confident that he could bend Washington to his vision.
Now that’s over. Musk said this week that he’s leaving his job as a senior adviser, an announcement that came after he revealed his plan to curtail political donations and he criticized the centerpiece of Trump’s legislative agenda.
It’s a quiet exit after a turbulent entrance, and he’s trailed by upheaval and unmet expectations. Thousands of people were indiscriminately laid off or pushed out — hundreds of whom had to be rehired — and some federal agencies were eviscerated.

But no one has been prosecuted for the fraud that Musk and Trump said was widespread within the government. Musk reduced his target for cutting spending from $2 trillion to $1 trillion to $150 billion, and even that goal may not be reached.
In Silicon Valley, where Musk got his start as a founder of PayPal, his kind of promises are known as vaporware — a product that sounds extraordinary yet never gets shipped to market.
Trump said Thursday on his Truth Social platform that he would hold a press conference Friday with Musk. “This will be his last day, but not really, because he will, always, be with us, helping all the way,” Trump added. “Elon is terrific!”
Musk’s position was always designed to be temporary, and he had previously announced his intention to dedicate more of his time to his companies. But he also told reporters last month that he was willing to work part-time for Trump “indefinitely, as long as the president wants me to do it.”
Musk got a seat at Trump’s table and put $250 million behind his campaign
It was clear that Musk wouldn’t be the typical kind of presidential adviser around the time that he showed the world his belly button.
Racing on stage at a campaign rally one month before the election, he jumped for joy next to Trump, his T-shirt rising to expose his midriff. Musk had already sold Trump on his idea for a Department of Government Efficiency while also putting at least $250 million behind his candidacy.
The plan called for a task force to hunt for waste, fraud and abuse, a timeworn idea with a new twist. Instead of putting together a blue-ribbon panel of government experts, Trump would give his top donor a desk in the White House and what appeared to be carte blanche to make changes.
Musk deployed software engineers who burrowed into sensitive databases, troubling career officials who sometimes chose to resign rather than go along. Trump brushed off concerns about Musk’s lack of experience in public service or conflicts of interest from his billions of dollars in federal contracts.
Their unlikely partnership had the potential for a generational impact on American politics and government. While Musk dictated orders for government departments from his perch in the White House, he was poised to use his wealth to enforce loyalty to the president.
His language was that of catastrophism. Excessive spending was a crisis that could only be solved by drastic measures, Musk claimed, and “if we don’t do this, America will go bankrupt.”
But even though he talked about his work in existential terms, he treated the White House like a playground. He brought his children to a meeting with the Indian prime minister. He let the president turn the driveway into a makeshift Tesla showroom to help boost sales. He installed an oversized screen in his office that he occasionally used to play video games.
Sometimes, Trump invited Musk to sleep over in the Lincoln Bedroom.
“We’ll be on Air Force One, Marine One, and he’ll be like, ‘do you want to stay over?’” Musk told reporters. The president made sure he got some caramel ice cream from the kitchen. “This stuff’s amazing,” Musk said. “I ate a whole tub of it.”




Elon Musk and President Trump shake hands as they attend the men's NCAA wrestling competition at the Wells Fargo Center in Philadelphia, Pennsylvania, on March 22, 2025. (AFP)

Looking back on his experience in government, he described it as a lark.
“It is funny that we’ve got DOGE,” an acronym that references an online meme featuring a surprised-looking dog from Japan. “How did we get here?”
Musk did not give federal workers the benefit of the doubt
From the beginning, Musk treated federal workers with contempt. At best, they were inefficient; at worst, they were committing fraud.
His team offered them a “fork in the road,” meaning they could get paid to quit. Probationary employees, generally people new on the job without full civil service protection, were shown the door.
Anyone who stayed faced escalating demands, such as what became known as the “five things” emails. Musk wanted every government employee to submit a list of five things they accomplished in the previous week, and he claimed that “failure to respond will be taken as a resignation.”
Some administration officials curtailed the plan, concerned that it could jeopardize security in more sensitive areas of the government, and it eventually faded, an early sign of Musk’s struggle to get traction.
But in the meantime, he continued issuing orders like thunderbolts.
One day in February, Musk posted “CFPB RIP,” plus an emoji of a tombstone. The headquarters of the Consumer Financial Protection Bureau, created after the Great Recession to protect Americans from fraud and deceptive practices, was shut down and employees were ordered to stop working.
Musk had already started gutting the US Agency for International Development, a pillar of the country’s foreign policy establishment and the world’s largest provider of humanitarian assistance.
“Spent the weekend feeding USAID into a wood chipper,” he bragged.
Thousands of contacts were cut off, pleasing conservatives who disliked the agency’s progressive initiatives on climate change and gay rights.
Musk rejected concerns about the loss of a crucial lifeline for impoverished people around the globe, saying, “no one has died.” However, children who once relied on American assistance perished from malnutrition, and the death toll is expected to increase.
The lawsuits began piling up. Sometimes workers got their jobs back, only to lose them again.
The Food and Drug Administration, which is responsible for ensuring the safety of everything from baby formula to biotech drugs, planned to lay off 3,500 employees. But again and again, the agency was forced to rehire people who were initially deemed expendable, including laboratory scientists, travel bookers and document specialists.
Commissioner Marty Makary, who started his job after many of the cuts took place, told attendees at a recent conference that “it was hard and my job is to make sure we can heal from that.”
Only 1,900 layoffs took place, but another 1,200 staffers took buyouts or early retirement. Experts fear the agency has lost much of its institutional knowledge and expertise in areas like vaccines, tobacco and food.
There are also concerns about safety on public lands. The National Park Service has been bleeding staff, leaving fewer people to maintain trails, clean restrooms and guide visitors. More cuts at the Forest Service could undermine efforts to prevent and fight wildfires.
The Environmental Protection Agency faces a broad overhaul, such as gutting the Office of Research and Development, which was responsible for improving air pollution monitoring and discovering harmful chemicals in drinking water.
Not even low-profile organizations were exempt. Trump ordered the downsizing of the US Institute of Peace, a nonprofit think tank created by Congress, and Musk’s team showed up to carry out his plan. The organizations’ leaders were deposed, then reinstated after a court battle.
Musk made little headway at the top sources of federal spending
The bulk of federal spending goes to health care programs like Medicaid and Medicare, plus Social Security and the military.
Unfortunately for Musk, all of those areas are politically sensitive and generally require congressional approval to make changes.
Thousands of civilian workers were pushed out at the Pentagon, and Defense Secretary Pete Hegseth is reducing the ranks of top generals and looking to consolidate various commands. A plan to downsize an office for testing and evaluating new weapons systems could save $300 million per year. Hegseth recently asked employees to submit one idea per week for cutting waste.




US President Donald Trump and Elon Musk (R) speak before departing the White House on his way to his South Florida home in Mar-a-Lago in Florida on March 14, 2025. (AFP)

However, the Pentagon budget would increase by $150 billion, for a total of more than $900 billion, under Trump’s spending proposal working its way through Congress. The money includes $25 billion to lay the groundwork for Trump’s “golden dome” missile defense program and $34 billion to expand the naval fleet with more shipbuilding.
Another $45 million is expected to be spent on a military parade on June 14, which is the 250th anniversary of the Army’s founding and Trump’s 79th birthday.
Musk also faced blowback for targeting Social Security, which provides monthly benefits to retirees and some children. He suggested that the popular program was “a Ponzi scheme” and the government could save between $500 billion and $700 billion by tackling waste and fraud.
However, his estimates were inflated. Social Security’s inspector general said there was only $71.8 billion in improper payments over eight years. Nor was there any evidence that millions of dead people were receiving benefits.
Changes to Social Security phone services, pitched as a way to eliminate opportunities for fraud, were walked back after an outcry from lawmakers and beneficiaries. But the agency could still shed 7,000 workers while closing some of its offices.
Musk’s popularity cratered even though Americans often agreed with his premise that the federal government is bloated and wasteful, according to polling from The Associated Press-NORC Center for Public Affairs Research.
Just 33 percent of US adults had a favorable view of Musk in April, down from 41 percent in December. In addition, 65 percent said Musk had too much influence over the federal government.
Musk talked of staggering savings but delivered modest results
During a campaign rally in October, Musk said he could find “at least $2 trillion” in spending cuts. In January, before Trump was inaugurated, he revised by saying, “if we try for $2 trillion, we’ve got a good shot at getting one.”
But in April, at a Cabinet meeting, Musk provided a different target. He was “excited to announce” that they could reach $150 billion in savings during the current fiscal year.
Whether that figure proves to be accurate is difficult to measure, especially because DOGE routinely inflated or mischaracterized its work. But it falls short of President Bill Clinton’s initiative three decades ago, which resulted in $136 billion in savings — the equivalent of more than $240 billion today.
Elaine Kamarck, a key figure in the Clinton administration, said they focused on making the government more responsive and updating antiquated internal procedures. The work took years.
“We went about it methodically, department by department,” she said. The effort also reduced the federal workforce by more than 400,000 employees.
However, Musk did little to seek insight from people who knew the inner workings of government.
“They made some changes without really knowing what they were doing,” said Alex Nowrasteh, vice president for economic and social policy studies for the libertarian think tank Cato Institute. He said there were “a lot of unforced errors.”
In the end, Nowrasteh said, “they set themselves up for failure.”


UN Security Council to meet Wednesday on Israel’s Qatar strikes: diplomatic sources

UN Security Council to meet Wednesday on Israel’s Qatar strikes: diplomatic sources
Updated 10 September 2025

UN Security Council to meet Wednesday on Israel’s Qatar strikes: diplomatic sources

UN Security Council to meet Wednesday on Israel’s Qatar strikes: diplomatic sources
  • The meeting, scheduled for 3:00 p.m. in New York (1900 GMT), was requested by Algeria and Pakistan, among others, the sources said Tuesday

UNITED NATIONS, United States: The UN Security Council will hold an emergency meeting on Wednesday in response to Israel’s strikes targeting Hamas officials in Qatar, diplomatic sources told AFP.
The meeting, scheduled for 3:00 p.m. in New York (1900 GMT), was requested by Algeria and Pakistan, among others, the sources said Tuesday.
 

 


RFK Jr.’s latest ‘Make America Healthy Again’ report calls for more scrutiny of vaccines and autism

RFK Jr.’s latest ‘Make America Healthy Again’ report calls for more scrutiny of vaccines and autism
Updated 10 September 2025

RFK Jr.’s latest ‘Make America Healthy Again’ report calls for more scrutiny of vaccines and autism

RFK Jr.’s latest ‘Make America Healthy Again’ report calls for more scrutiny of vaccines and autism
  • Kennedy promised to “recast the entire program” for investigating vaccine injuries as he joined administration officials to unveil the MAHA report

WASHINGTON: The Trump administration directed the nation’s public health and environmental agencies to prioritize investigations into vaccine injuries, prescription drug use and autism’s causes in its latest “Make America Healthy Again” report released Tuesday.
The 20-page report, overseen by Health and Human Services Secretary Robert F. Kennedy Jr., echoes many of the talking points Kennedy and those in his wide-ranging and politically diverse “MAHA” movement have united around. The document promises to put an end to childhood diseases and to make children healthier, but does not lay out regulatory changes to ensure an overhaul of Americans’ health.
Among the report’s recommendations is a call for more rigorous government investigations into vaccine injuries, a move that could stir more uproar as lawmakers raise alarm over how the health secretary’s anti-vaccine policies have thrown the nation’s public health agency into weeks of tumult.
Kennedy promised to “recast the entire program” for investigating vaccine injuries as he joined administration officials to unveil the MAHA report. Currently, the Centers for Disease Control and Prevention investigates injuries that are reported by individuals or providers.
“They will be welcomed and we will learn everything we can about them so we can improve the safety of these products,” Kennedy said of people who report vaccine injuries. He added that doctors are not currently compensated for filing complaints for vaccine injuries.
A bipartisan group of senators has raised alarm over Kennedy’s actions at the CDC, which was thrown into chaos last month when Kennedy abruptly fired his hand-picked director and other top leaders walked out on the job, citing disagreements over immunization recommendations. Last week, senators grilled Kennedy over his anti-vaccine agenda and leadership of the public health agencies.
The Trump administration’s cuts to federal health programs, including Medicaid, as well as Kennedy’s anti-vaccine rhetoric, could ultimately lead to worse health outcomes for children, Dr. Susan J. Kressly, the president of the American Academy of Pediatrics, said in a statement.
“It lacks details on how the Administration plans to address those issues and omits key drivers that harm children’s health, including gun violence and environmental hazards,” Kressly said of the report. “We also cannot ignore the fact that this report is being published in the context of other recent harmful actions by the Administration and Congress that undermine many of the report’s recommendations.”
An earlier version of the report was first leaked and publicized in August. Slight changes have been made to the final draft, which was developed by a “MAHA” commission that included Kennedy and other members of the president’s cabinet. Despite pledging “radical transparency,” the commission never held a public meeting ahead of the report’s release.
Among the differences in the final version of the report released on Tuesday is a call for the National Institutes of Health to use personal medical records and health insurance claims data to investigate the cause of diseases and disorders, including autism.
“The NIH will link multiple datasets, such as claims information, electronic health records, and wearables data, into a single integrated dataset for researchers studying the causes of, and developing treatments for, the chronic disease crisis,” the report says.
Kennedy has vowed for months that he would unveil the cause of autism, a complex developmental disorder that impacts the brain, by September. He has promised to execute a massive research effort to identify the disorder’s causes, but has stayed mum on details regarding who is conducting that research and when it will be released.
Last month, President Donald Trump pressed Kennedy for his findings during a cabinet meeting.
Those who have spent decades researching autism have found no single cause. Besides genetics, scientists have identified various possible factors, including the age of a child’s father, the mother’s weight, and whether she had diabetes or was exposed to certain chemicals.
Trump ordered his first action as a result of the MAHA report’s recommendations on Tuesday evening, signing a memorandum to beef up enforcement of pharmaceutical ads that run across TVs, websites and social media accounts. Administration officials said during a call on Tuesday that they would be sending “hundreds” of letters to pharmaceutical companies that have run misleading ads.
The “MAHA” report addressed a number of other issues, including ultraprocessed food consumption, water quality, fluoride and the use of prescription drugs in children. Agencies, including the health department and the Department of Justice, should increase enforcement and oversight of prescription drug ads, especially those published by social media influencers and telehealth companies, the report says.
The National Institutes of Health, which is facing a 40 percent cut to its budget, is tasked with undertaking much of the MAHA-related research in the report.
 

 


Ukraine’s air force warns that Russian drones entered Poland’s airspace

Patriot missles are seen at the Rzeszow-Jasionka Airport, March 25, 2022, in Jasionka, Poland. (AP)
Patriot missles are seen at the Rzeszow-Jasionka Airport, March 25, 2022, in Jasionka, Poland. (AP)
Updated 10 September 2025

Ukraine’s air force warns that Russian drones entered Poland’s airspace

Patriot missles are seen at the Rzeszow-Jasionka Airport, March 25, 2022, in Jasionka, Poland. (AP)
  • “Polish and allied aircraft are operating in our airspace, while ground-based air defense and radar reconnaissance systems have been brought to the highest state of readiness,” Poland’s operational command said in a post on X

KYIV: Polish and allied aircraft were activated early on Wednesday to ensure the safety of Poland’s airspace after Ukraine’s air force warned that Russian drones entered NATO-member Poland’s airspace.
“Polish and allied aircraft are operating in our airspace, while ground-based air defense and radar reconnaissance systems have been brought to the highest state of readiness,” Poland’s operational command said in a post on X.
Earlier, the Ukrainian Air Force said on the Telegram messaging app that drones were heading west and threatening the city of Zamosc in Poland.
It was not immediately clear how many drones were in Poland’s airspace.
Ukrainian media reported that at least one drone was heading toward the western Polish city of Rzeszow.
Reuters could not independently verify the reports.  

 


Top US immigration official defends rule targeting ‘anti-American’ views in green card, visa process

Top US immigration official defends rule targeting ‘anti-American’ views in green card, visa process
Updated 10 September 2025

Top US immigration official defends rule targeting ‘anti-American’ views in green card, visa process

Top US immigration official defends rule targeting ‘anti-American’ views in green card, visa process
  • Edlow said the agency needs to be aware of what people applying for benefits are saying online and when that speech becomes hateful

CAMP SPRINGS, Maryland: A new rule allowing a US immigration agency to scrutinize a person’s “anti-American” views when applying for a green card or other benefits isn’t designed to target political beliefs, but to identify support for terrorist activity, the organization’s director told The Associated Press.
In a wide-ranging interview on Monday, the director of the US Citizenship and Immigration Services, Joseph Edlow, delved into the agency’s contentious policy — announced last month — which allows officers to decide whether a foreigner applying for a certain benefit has endorsed what they believe are anti-American views.
Edlow also detailed problems he sees with a training program that’s popular with international students, but hated by some Trump supporters. He described how and why he’s thinking of changing the process by which hundreds of thousands of people become American citizens every year.
Edlow is overseeing the pivotal immigration agency at a time when President Donald Trump is upending traditional immigration policy and charging ahead with an aggressive agenda that restricts who gets to come into the US through legal pathways.
Questions over what constitutes anti-Americanism
The new policy by USCIS stipulates that its officers could now consider whether an applicant “endorsed, promoted, supported, or otherwise espoused” anti-American, terrorist or antisemitic views when making their decision about whether to grant the benefit.
Critics questioned whether it gives officers too much leeway in rejecting foreigners based on a subjective judgment.
Edlow said the agency needs to be aware of what people applying for benefits are saying online and when that speech becomes hateful. He said the agency won’t automatically deny someone a benefit because of what they said, but it’s a factor they take into consideration.
He said they’re not looking for people who’ve posted anti-Trump speech. He said criticism of any administration was “one of the most American activities you can engage in.”
“This goes beyond that. This is actual espousing (of) the beliefs and the ideology of terrorist, of terrorist organizations and those who wish to destroy the American way of life.”
In examples of speech that might raise a red flag, Edlow noted students who post pro-Hamas beliefs or are taking part in campus protests where Jewish students are blocked from entering buildings.
The Trump administration has made cracking down on student protests a high priority. The government has said noncitizens who participate in such demonstrations should be expelled from the US for expressing views the administration considers to be antisemitic and “pro-Hamas,” referring to the Palestinian militant group that attacked Israel on Oct. 7, 2023.
In one of the most high-profile examples, federal immigration authorities in March arrested Palestinian activist and green card holder, Mahmoud Khalil, who as a student played a prominent role in Columbia University’s pro-Palestinian protests.
USCIS agents now carry weapons and could make arrests
USCIS recently announced that it could now hire law enforcement agents who could make arrests, execute search warrants and carry weapons. That’s a change for the agency that historically investigates immigration fraud but hands cases over to other agencies to prosecute.
Edlow said their focus would be on “large scale criminal activity” such as large-scale asylum fraud or marriage fraud.
“They’re not a police force. This is going to be a highly trained and very small section of this agency dealing specifically with rooting out immigration fraud,” said Edlow. He said previously the agency was stymied by how far it could take cases because they eventually had to turn them over to another agency for prosecution.
Edlow said there would be a “couple hundred” of the officers to start, but put it in the context of the “thousands upon thousands” of other staff that the agency has to adjudicate benefits.
The agency’s role in verifying voter rolls
The Systemic Alien Verification for Entitlements program was created in 1987 as a way for various government agencies to check whether someone is eligible for public benefits.
Edlow said his agency has been working with the Social Security Administration to make it easier for states and local governments to access. They can now access the system using a Social Security number or the last four digits of one, instead of needing a specific Homeland Security identifying number that most of them didn’t have. And they can submit a number of requests at the same time as opposed to one at a time.
Edlow also said USCIS is also entering into agreements with secretaries of state so they can use the system to verify their voter rolls in what he said was a bid to counter voter fraud.
Critics have questioned the reliability of the data and whether people will be erroneously dropped from voter rolls as well as whether their privacy is being protected.
Edlow says the agency has a “huge team” to verify the information is accurate.
Putting ‘parameters’ on work for international students
While Edlow created a furor in his confirmation hearing when he said he’d like to see an end to post-graduate work authorization for international students, he told The AP he’s not proposing any specific changes at this time.
About 240,000 of the 1.1 million people on student visas in the US are on Optional Practical Training — a one-year post-graduation period when they are authorized to work in fields related to their degrees. It can last up to three years for graduates in science, math and technology fields, which have faced persistent labor shortages in the US.
Edlow said ultimately the fate of the program isn’t just up to his agency to decide, but he wants to put “parameters” on it.
“It creates a competitive, in my opinion, an unfair, competitive advantage for businesses to hire these students over US students because, well, they can get in for short term, maybe get them for cheaper,” he said.
Changes in the offing for citizenship tests
Anyone wishing to become an American must pass tests on English and American government and history.
Edlow said the agency will soon be reverting to using a test introduced in 2020, during Trump’s first term. That test required applicants to answer more questions. He’s exploring various changes to the current test, with no firm timeline. He described it as “too easy,” saying answers can just be memorized.
“That’s not showing an attachment to the Constitution as required by the statute,” said Edlow. “Nor is writing a single sentence in English and reading a single sentence in English really demonstrating a familiarity at a certain degree with the English language.”
Edlow said he’s weighing having applicants write an essay to assess their understanding of the citizenship process.
H1-B visas and the ‘displacement of American workers’
The H1-B visa program, commonly associated with the tech industry, was created in 1990 for people with a bachelor’s degree or higher in fields where jobs are deemed hard to fill, especially science, technology, engineering and math. Critics say the visa allows companies to pay lower wages with fewer labor protections.
Controversy over the program has been especially pronounced in the Republican Party. Wealthy members of the tech world have supported the visas, while many people in Trump’s base are suspicious.
The White House is believed to be weighing new rules for the program.
Edlow said his concern with H1-B visas is the “displacement of American workers.”
“These companies can more easily and cheaply bring in very experienced foreign workers at the lower wage level, as opposed to having US employees that you might need to pay at a different level,” he said.


US Supreme Court to decide legality of Trump’s tariffs

A view of the U.S. Supreme Court in Washington, U.S. June 29, 2024. (REUTERS)
A view of the U.S. Supreme Court in Washington, U.S. June 29, 2024. (REUTERS)
Updated 10 September 2025

US Supreme Court to decide legality of Trump’s tariffs

A view of the U.S. Supreme Court in Washington, U.S. June 29, 2024. (REUTERS)
  • The Supreme Court agreed to hear a separate challenge to Trump’s tariffs brought by a family-owned toy company, Learning Resources

WASHINGTON: The US Supreme Court agreed on Tuesday to decide the legality of Donald Trump’s sweeping global tariffs, setting up a major test of one of the Republican president’s boldest assertions of executive power that has been central to his economic and trade agenda.
The justices took up the Justice Department’s appeal of a lower court’s ruling that Trump overstepped his authority in imposing most of his tariffs under a federal law meant for emergencies. The court swiftly acted after the administration last week asked it to review the case, which implicates trillions of dollars in customs duties over the next decade.
The court, which begins its next nine-month term on October 6, placed the case on a fast track, scheduling oral arguments for the first week of November.
The US Court of Appeals for the Federal Circuit in Washington ruled on August 29 that Trump overreached in invoking a 1977 law known as the International Emergency Economic Powers Act, or IEEPA, to impose the tariffs, undercutting a major priority for the president in his second term. The tariffs, however, remain in effect during the appeal to the Supreme Court.

HIGHLIGHTS

• Trade court said Trump exceeded powers with tariffs

• Administration called decision judicial overreach

• Trump cited longstanding trade deficit as an emergency

The appeals court ruling stems from two challenges. One was brought by five small businesses that import goods, including a New York wine and spirits importer and a Pennsylvania-based sport fishing retailer. The other was filed by 12 US states — Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York, Oregon and Vermont — most of them governed by Democrats.
The Supreme Court also agreed to hear a separate challenge to Trump’s tariffs brought by a family-owned toy company, Learning Resources.
The levies are part of a global trade war instigated by Trump since he returned to the presidency in January that has alienated trading partners, increased volatility in financial markets and fueled global economic uncertainty.
Trump has made tariffs a key foreign policy tool, using them to renegotiate trade deals, extract concessions and exert political pressure on other countries. Trump in April invoked the 1977 law in imposing tariffs on goods imported from individual countries to address trade deficits, as well as separate tariffs announced in February as economic leverage on China, Canada and Mexico to curb the trafficking of fentanyl and illicit drugs into the US
The law gives the president power to deal with “an unusual and extraordinary threat” amid a national emergency. It historically had been used for imposing sanctions on enemies or freezing their assets. Prior to Trump, the law had never been used to impose tariffs.
“The fact of the matter is that President Trump has acted lawfully by using the tariff powers granted to him by Congress in IEEPA to deal with national emergencies and to safeguard our national security and economy. We look forward to ultimate victory on this matter with the Supreme Court,” White House spokesperson Kush Desai said.
Jeffrey Schwab, a lawyer with the Liberty Justice Center legal group representing small business challengers to Trump’s tariffs, said he is confident that the Supreme Court will recognize that the president does not have unilateral tariff power under this law.
“Congress, not the president alone, has the constitutional power to impose tariffs,” Schwab said.

’ECONOMIC CATASTROPHE’
Trump’s Justice Department has argued that the law allows tariffs under emergency provisions that authorize a president to “regulate” imports.
Denying Trump’s tariff power “would expose our nation to trade retaliation without effective defenses and thrust America back to the brink of economic catastrophe,” it said. Trump has said that if he loses the case the US might have to unwind trade deals, causing the country to “suffer so greatly.” The nonpartisan Congressional Budget Office reported in August that the increased duties on imports from foreign countries could reduce the US national deficit by $4 trillion over the next decade.
The US Constitution grants Congress, not the president, the authority to issue taxes and tariffs, and any delegation of that authority must be both explicit and limited, according to the lawsuits.
The Federal Circuit agreed. “It seems unlikely that Congress intended, in enacting IEEPA, to depart from its past practice and grant the president unlimited authority to impose tariffs,” it said in a 7-4 decision.
The appeals court also said that the administration’s expansive view of this law violates the Supreme Court’s “major questions” doctrine, which requires executive branch actions of vast economic and political significance to be clearly authorized by Congress. The New York-based US Court of International Trade, which has jurisdiction over customs and trade disputes, previously ruled against Trump’s tariff policies on May 28.
Another court in Washington ruled that the law does not authorize Trump’s tariffs, and the administration has appealed that decision as well. At least eight lawsuits have challenged Trump’s tariff policies, including one filed by the state of California.
Tim Brightbill, an expert in international trade law at the Wiley Rein law firm, said it was important for the Supreme Court to weigh in as quickly as possible given that it is an “extremely important question involving billions of dollars — potentially trillions of dollars.”
Brightbill said that only a handful of trade law cases have gone to the Supreme Court, “so it just shows the extreme importance of this issue across the US economy, and really the global economy.”