Washington D.C. – A federal appeals court has delivered a significant blow to former President Donald Trump's trade policies, ruling that most of his sweeping global tariffs are illegal. The decision, handed down by the U.S. Court of Appeals for the Federal Circuit, sets the stage for a highly anticipated legal battle before the Supreme Court regarding the extent of presidential authority in trade matters.
In a 7-4 decision, the appeals court concluded that Trump lacked the authority to impose "open-ended tariffs" under the International Emergency Economic Powers Act (IEEPA). The court emphasized that the power to levy tariffs is a "core Congressional power," not one unilaterally held by the executive branch. This ruling directly challenges the administration's interpretation of its powers to impose duties on a wide range of imports.
The court has stayed its decision until October 14, 2025, providing the Trump administration a window to appeal to the Supreme Court. Following the ruling, Trump indicated his intent to appeal, stating on social media, "Now, 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 also warned that removing the tariffs would be a "total disaster for the Country."
The legal challenge originated from a coalition of Democratic-led states and small import businesses, arguing that the IEEPA does not grant the president the power to impose such broad tariffs. These tariffs, some reaching as high as 50% on imports from certain countries like India, have been a cornerstone of Trump's trade agenda, aiming to rebalance global commerce.
The upcoming Supreme Court review is expected to be a landmark case, potentially redefining the balance of power between the executive and legislative branches concerning trade policy. The Court, which includes a conservative majority with three justices appointed by Trump, will face a critical decision on whether to uphold the appeals court's ruling or side with the former president's expansive view of executive authority. The outcome will have profound implications for future U.S. trade policy and the constitutional separation of powers.