WASHINGTON D.C.: In a major legal blow to President Donald Trump’s trade policy, a U.S. federal appeals court ruled on Friday that the vast majority of his tariffs are illegal because he overstepped his authority in using a 1977 emergency law. The ruling, a 7-4 decision by the U.S. Court of Appeals for the Federal Circuit, found that the president’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs lacks a legal basis.
The IEEPA, a law historically used for sanctions and asset freezes, does not explicitly grant the President the power to impose tariffs. The court’s majority opinion stated, “It seems unlikely that Congress intended to … grant the President unlimited authority to impose tariffs.” This decision largely upheld a previous ruling from a specialized federal trade court in New York.
The ruling applies to two sets of tariffs: the “reciprocal” duties Trump imposed in April to address trade deficits and a set of tariffs announced in February against China, Canada, and Mexico, which were justified by a national emergency over cross-border drug flows. However, the ruling does not affect tariffs imposed under other legal authorities, such as those on steel and aluminum.
Despite the ruling, the court did not immediately rescind the tariffs, allowing them to remain in place until at least October 14, giving the Trump administration time to appeal the decision to the Supreme Court.
President Trump reacted strongly to the ruling on his Truth Social platform, calling the appeals court “Highly Partisan” and stating that if the decision were to stand, it would “literally destroy the United States of America.” He added that he believes the Supreme Court will ultimately rule in his favor. White House spokesman Kush Desai echoed this sentiment, asserting that Trump had acted lawfully and that the administration “look[s] forward to ultimate victory on this matter.”
The Justice Department has warned that revoking the tariffs could lead to “financial ruin” for the U.S. government, as revenue from tariffs has totaled $159 billion, more than double what it was at the same time last year.
Federal Appeals Court Rules Trump’s Tariffs Are Illegal, Setting Up Supreme Court Battle
