Court Rules Most Trump Tariffs Illegal: What’s Next for U.S. Trade?

U.S.President Donald Trump delivers remarks on tariffs at the White House in Washington,D.C./Image-Reuters

A U.S. appeals court ruled that most of President Trump’s tariffs are illegal because he used emergency powers that don’t allow him to set new tariffs on his own. These tariffs, placed on imports from China, Canada, and Mexico, will stay in place until October 14 as the Trump team appeals to the Supreme Court. The court said only Congress—not the president—can set tariffs, and Trump stretched the law too far by calling economic and drug issues national emergencies.

What Happened?

On Friday, a divided appeals court declared that most of the tariffs imposed by President Trump are against the law. The court found that Trump went beyond his legal authority by using the International Emergency Economic Powers Act (IEEPA) to justify imposing broad tariffs on imports from China, Canada, Mexico, and nearly all other U.S. trading partners. However, the tariffs will stay in place until October 14 to give the Trump administration time to appeal the decision to the Supreme Court.

Why Did the Court Rule This Way?

The judges said that while the president does have broad emergency powers under IEEPA, the law does not specifically allow imposing tariffs or taxes. The court explained that only Congress has the clear power to set tariffs, and any authority Congress gives to the president must be explicit and limited. Trump argued that trade imbalances and cross-border drug flows were national emergencies, but the court ruled these did not meet the bar for such sweeping trade actions.

What Tariffs Are Affected?

The ruling covers tariffs implemented as part of Trump's "reciprocal" trade war plans and those against China, Canada, and Mexico in early 2025. The decision does not affect tariffs on steel, aluminum, or other import penalties based on different legal statutes.

Trump’s Reaction and What Happens Next

Trump blasted the verdict, calling the court “highly partisan” and warning—on his Truth Social platform—that lifting the tariffs would be “a total disaster for the country”. He vowed to pursue a Supreme Court appeal, predicting a win for his policies.

Why Does This Matter?

The court’s decision throws Trump’s key economic policy tool—tariffs—into doubt and creates more uncertainty for businesses, financial markets, and America’s trading partners. Trade experts say if the Supreme Court upholds the ruling, the U.S. government could have to refund billions in collected duties. The case also highlights the tension over the limits of presidential power, with Congress traditionally holding the authority over trade and tariffs.

Main conclusions

• Most Trump tariffs are not legal, court says, but stay in place for now.
• Trump relied on emergency powers, but judges ruled the law doesn’t let presidents impose tariffs without Congress.
• The Supreme Court will likely have the final say, making this a historic legal and economic showdown.

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