US Appeals Court Rules Trump’s Tariffs Illegal, Case Likely Headed to Supreme Court
A US federal appeals court has struck down a series of tariffs imposed under former President Donald Trump, ruling that he exceeded his authority in enacting them. The decision marks a major setback for Trump’s trade policies and could set the stage for a high-stakes legal battle before the Supreme Court.
Court Rejects Trump’s Use of Emergency Powers
In a 7-4 decision, the US Court of Appeals for the Federal Circuit found that Trump’s sweeping tariffs violated the law. The judges ruled that the International Emergency Economic Powers Act (IEEPA)—the statute Trump relied on—does not authorize the president to unilaterally impose tariffs.
The ruling invalidates Trump’s “reciprocal” tariffs, which placed a baseline 10% levy on dozens of countries, as well as tariffs targeting China, Mexico, and Canada. However, tariffs on steel and aluminum remain in place because they were enacted under a different law.
The court delayed enforcement of its decision until October 14, allowing the Trump legal team to appeal to the Supreme Court.
Trump Calls Decision a Threat to US Economy
Trump sharply criticized the ruling on his Truth Social platform, accusing the court of partisanship.
He warned that removing the tariffs would be “a total disaster” for the United States, claiming it would weaken the country’s financial standing and jeopardize national security. Trump has long argued that tariffs are necessary to protect American workers and industries from unfair foreign competition.
Why the Judges Rejected the Tariffs
The appeals court made clear that Congress, not the president, holds the power to set tariffs and taxes.
In its 127-page opinion, the court noted that:
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The IEEPA does not mention tariffs or duties.
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Congress has historically reserved tariff authority for itself unless it explicitly delegates it.
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Allowing unilateral tariff powers would give the president unchecked control over trade policy—something lawmakers never intended.
Legal Challenges Sparked by Businesses and States
The case stemmed from lawsuits filed by small businesses and a coalition of states after Trump’s executive orders introduced tariffs in April. At the time, Trump declared the measures a victory against unfair trade practices, even calling the rollout America’s “liberation day.”
Earlier this year, a New York-based trade court also struck down the tariffs, but that ruling was paused while the appeals process played out.
Trump’s legal team argued that ending the tariffs could trigger economic chaos, comparing the potential fallout to the 1929 stock market crash. They warned of risks to global financial commitments and US national security.
Next Stop: The Supreme Court
The appeals court’s decision almost guarantees the case will move to the US Supreme Court, which in recent years has taken a stricter view of presidential powers.
The justices will be asked to decide whether Trump’s broad use of emergency authority to impose tariffs was legitimate—or an example of executive overreach.
The Supreme Court currently has a 6-3 conservative majority, with three justices appointed by Trump himself, making the outcome highly unpredictable.
Impact on Trade and Foreign Relations
The ruling also casts uncertainty over international trade agreements negotiated during Trump’s presidency, particularly deals where countries accepted tariff reductions in exchange for concessions.
If upheld, the decision would reassert Congress’s control over tariff policy and could significantly reshape America’s trade strategy moving forward.