A US appeals court has ruled that most tariffs introduced by Donald Trump are illegal. The decision undermines one of his hallmark trade policies and sets up a fierce legal confrontation.
The judgement affects Trump’s “reciprocal” tariffs on dozens of nations. It also blocks levies imposed on China, Mexico and Canada.
Court rejects presidential authority
The US Court of Appeals for the Federal Circuit issued a 7-4 decision. Judges said Trump’s tariffs were “invalid as contrary to law”.
They dismissed his claim that the International Emergency Economic Powers Act allowed him to impose tariffs. The ruling stressed that tariff power rests with Congress, not the president.
The decision will take effect on 14 October, unless the Supreme Court intervenes.
Trump blasts ruling as partisan
Trump attacked the judgement on Truth Social. He said removing the tariffs would “literally destroy the United States”.
He accused the appeals court of partisanship and predicted eventual victory. Trump argued the tariffs kept America financially strong and secure.
Emergency law argument overturned
Trump had justified the tariffs under the IEEPA. He declared a national trade emergency, arguing imbalances threatened national security.
The court disagreed. In its 127-page opinion, it wrote that the IEEPA “neither mentions tariffs nor sets limits on presidential power to impose them”.
Judges emphasised that Congress has always reserved tariff-setting for itself and only delegates this power explicitly.
States and businesses challenge orders
The case followed two lawsuits filed by small businesses and several states. They challenged Trump’s April executive orders.
His directives imposed a 10% tariff on almost every country. They also introduced “reciprocal” tariffs against dozens of others. Trump called the day a “liberation” from unfair trade practices.
The Court of International Trade had already ruled against the tariffs earlier this year, though its decision was frozen during appeal.
Ruling hits neighbours and China
The appeals court struck down tariffs on Canada, Mexico and China. Trump had defended these measures as necessary to curb drug imports.
However, tariffs on steel and aluminium remain unaffected. Those were enacted under separate presidential powers.
White House fears economic collapse
Before the ruling, White House lawyers issued warnings of economic chaos. They argued that removing the tariffs could trigger a 1929-style collapse.
They said the US might fail to repay trillions already pledged by foreign partners. Such failure, they claimed, would weaken national security and damage the economy.
The decision also threatens agreements where foreign governments accepted reduced tariffs with Washington.
Supreme Court showdown expected
The case now appears headed for the Supreme Court. In recent years, the justices have limited presidents who acted without clear congressional approval.
During Joe Biden’s presidency, the court blocked climate rules and student debt relief. Both were struck down under the “major questions doctrine”.
The Supreme Court must now decide whether Trump’s tariff programme is an abuse of power or a lawful executive action.
Conservative majority could decide outcome
Trump lost at the appeals level, where only three of eleven judges were Republican appointees.
The Supreme Court is more favourable terrain. Six of nine justices are Republicans, including three appointed by Trump himself.
That conservative majority could determine the fate of a case that may redefine presidential powers in trade policy.
