U.S. Appeals Court Rules Donald Trump’s Tariff Powers Illegal – Supreme Court Battle Ahead
A Major Blow to Executive Authority
In a historic ruling, the U.S. Court of Appeals for the Federal Circuit has struck down most of former President Donald Trump’s tariff powers. The court, in a 7–4 decision, declared that the broad tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were illegal. Judges concluded that such sweeping tariff-setting authority belongs to Congress, not the president.
Why the Tariffs Were Controversial
The tariffs, often referred to as the “Liberation Day” tariffs, were introduced in April 2025 through executive orders. The Trump administration defended them as reciprocal trade measures against countries accused of unfair practices, drug trafficking, and immigration-related issues.
However, critics—including U.S. businesses and a coalition of states—argued that the justifications had no legal foundation in the IEEPA. They claimed the executive branch overstepped its constitutional limits, leading to multiple lawsuits challenging the tariffs.
Court Decisions So Far
- In May 2025, the U.S. Court of International Trade first ruled against the tariffs, stating that the president had exceeded his authority under the IEEPA.
- On appeal, the Federal Circuit Appeals Court upheld this view, confirming that tariff powers are not delegated to the executive branch through emergency economic laws.
Tariffs Still in Place – For Now
Despite being ruled unlawful, the tariffs remain in effect until October 14, 2025. This temporary allowance gives the Trump administration time to escalate the matter to the U.S. Supreme Court, where the ultimate decision will be made.
Mixed Reactions from Leaders and Experts
- Donald Trump condemned the ruling as a “total disaster for the country” and emphasized that “all tariffs are still in effect.” He has vowed to fight the case at the Supreme Court.
- Democrats and legal experts hailed the verdict as a vital check on presidential overreach. They highlighted that federal courts are reinforcing the constitutional principle that trade policy lies in the hands of Congress.
- Economists expressed concern that the ongoing legal battle may create uncertainty in global trade, affecting U.S. businesses, exporters, and international relations.
What Lies Ahead
This legal battle is set to reshape the balance of power between Congress and the presidency:
- Supreme Court showdown: The final ruling could either limit or expand presidential authority in trade matters.
- Economic impact: Businesses, investors, and global markets are bracing for volatility as the case unfolds.
- Future trade policies: The decision will likely influence how future administrations approach tariffs and emergency economic powers.
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