Appeals Court Strikes Down Trump’s Global Tariffs

A federal appeals court ruled that most of President Donald Trump’s global tariffs are unlawful, striking a major blow to his efforts to reshape U.S. trade policy on his own.

In a 7-4 decision, the U.S. Court of Appeals for the Federal Circuit rejected Trump’s authority to impose the tariffs. The court agreed with the lower court that his actions were “invalid as contrary to law.” However, the ruling is stayed until mid-October, allowing the Trump administration to appeal to the Supreme Court. Meanwhile, the tariffs remain in effect.

What the Court Said

The court emphasized that Congress, not the president, holds the power to impose tariffs. It determined that the International Emergency Economic Powers Act (IEEPA) does not give the president authority to impose tariffs of this scale.

Seven judges concluded that neither the “reciprocal” tariffs nor the “trafficking” tariffs aimed at Canada, Mexico, and China were authorized by Congress. “Tariffs are a core Congressional power,” the opinion stated.

A subset of four judges went further, ruling that IEEPA does not allow the president to issue any tariffs, not just the two in question. “The government’s interpretation would create a functionally limitless delegation of Congressional taxation authority,” they wrote.

In contrast, four minority judges argued that Trump’s declaration of a national emergency justified the tariffs. They claimed IEEPA authorizes tariffs to “regulate importation” under unusual circumstances.

Trump Reacts

On his social media platform, Trump condemned the ruling. He warned that a court order blocking the tariffs “would literally destroy the United States of America.”

He urged the Supreme Court to affirm his power to impose tariffs unilaterally. “With the help of the United States Supreme Court, we will use them to the benefit of our Nation and Make America Rich, Strong, and Powerful Again!” he wrote.

Legal Implications

The decision raises a key legal question: Can the president unilaterally impose tariffs using IEEPA, or is that power reserved for Congress?

After October 14, the case will return to the lower court to determine how the Supreme Court’s recent decision limiting nationwide injunctions may affect the outcome.

Background of the Case

The lawsuit began when small businesses and a coalition of states challenged Trump’s tariffs, claiming he exceeded his authority under IEEPA.

In May, the U.S. Court of International Trade ruled the tariffs unlawful. The Trump administration quickly appealed.

During oral arguments in July, federal judges expressed skepticism that a national emergency justified the tariffs. They noted that IEEPA never explicitly mentions tariffs, and no previous president had used the law this way.

Administration’s Concerns

Before the ruling, the U.S. Solicitor General asked the court to delay the decision, warning that blocking the tariffs could harm ongoing trade negotiations.

Trump administration officials had also cautioned that losing tariff authority would create “diplomatic embarrassment,” thr**ten negotiations with Russia and Ukraine, and jeopardize broader U.S. strategic interests.