Sat, 30 Aug 2025
The tariffs can remain in place until mid-October to allow the Trump administration time to request the Supreme Court take up the case.
US Appeals Court Rules Most Trump Tariffs Illegal
A US appeals court has deemed most tariffs imposed by President Donald Trump as unlawful, setting the stage for a potential Supreme Court showdown. The ruling affects tariffs on nearly every country in the world and those levied against China, Mexico, and Canada.
In a 7-4 decision, the Federal Circuit Appeals Court rejected Trump's argument that the tariffs were justified under an emergency economic powers act, deeming them "invalid as contrary to law". The ruling will not take effect until October 14th, allowing the administration time to appeal to the Supreme Court.
The court's decision cites Congress's exclusive authority to impose taxes and tariffs, stating that the International Emergency Economic Powers Act (IEEPA) does not grant the president unlimited power to set levies. This means Trump's "reciprocal" tariffs, imposed on countries with trade imbalances, are no longer valid.
Trump has criticized the appeals court's ruling, claiming it would be a disaster for the country and weaken its finances if allowed to stand. However, lawyers for the White House had argued that invalidating the tariffs would lead to catastrophic consequences for national security, foreign policy, and the economy.
The case is now likely to go before the Supreme Court, which has taken a skeptical view of presidential policies not directly authorized by Congress. If the top court agrees to hear the case, they may weigh whether Trump's tariff programme constitutes an example of presidential overreach or is grounded in law and presidential authority.
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