WASHINGTON, D.C.:
A U.S. appeals court has ruled that former President Donald Trump exceeded his authority by imposing sweeping global tariffs using emergency powers, declaring most of these duties illegal, though they will remain in effect until mid-October. Trump immediately announced plans to challenge the decision at the Supreme Court.
The 7-4 ruling by the U.S. Court of Appeals for the Federal Circuit upheld a lower court’s finding that Trump had overstepped his legal powers under the International Emergency Economic Powers Act (IEEPA) when he imposed broad, across-the-board tariffs on international trade. However, the court allowed the tariffs to remain temporarily in place, giving the former president time to take the case further.
Trump reacted swiftly, posting a statement on his social media platform Truth Social, calling the ruling “incorrect” and asserting, “The United States of America will win in the end.” He confirmed he would seek relief from the Supreme Court.
The decision represents a significant setback for Trump, who has repeatedly relied on tariffs as a central economic policy tool. Legal uncertainty now surrounds several trade deals Trump negotiated with major partners, including the European Union, and raises questions about what will happen to the billions of dollars collected under these tariffs if the Supreme Court does not uphold them.
It is important to note that this case does not address sector-specific tariffs, such as those targeting steel, aluminum, autos, and other imports, which the Trump administration imposed separately.
Diplomatic and Policy Implications
Since returning to office in January, Trump has used IEEPA to impose “reciprocal” tariffs on nearly all U.S. trading partners, generally at a 10% baseline rate, with higher rates for dozens of countries. He also applied similar measures on Mexico, Canada, and China, citing concerns over the flow of dangerous drugs into the United States.
In May, the U.S. Court of International Trade ruled that Trump had exceeded his powers, blocking most of the global tariffs. The appeals court later stayed that decision while reviewing the case.
Friday’s ruling emphasized that while IEEPA grants the president broad powers in times of national emergency, it does not explicitly authorize the imposition of tariffs or other duties. The court clarified that it was not ruling on the merits of Trump’s policy choices but solely on whether his authority under IEEPA allowed such global tariffs, concluding that it did not.
Ahead of the ruling, Trump administration officials argued that invalidating the tariffs would harm U.S. foreign policy and national security. Commerce Secretary Howard Lutnick warned that blocking the duties could “undermine strategic interests” and trigger retaliation from trade partners, while Treasury Secretary Scott Bessent highlighted the risk of “dangerous diplomatic embarrassment.”
Multiple legal challenges remain pending, and if the tariffs are ultimately struck down, companies affected by these duties may seek reimbursement for payments already made.
