A US appeals court has decided that most tariffs imposed by Donald Trump are unlawful. The judgement threatens to unravel one of his signature trade strategies and sets up a dramatic legal fight.
The ruling strikes down Trump’s “reciprocal” tariffs applied to dozens of countries. It also covers levies targeting China, Mexico and Canada.
Court rejects presidential authority claim
The US Court of Appeals for the Federal Circuit delivered a 7-4 decision. Judges declared that Trump’s tariffs were “invalid as contrary to law”.
They dismissed his claim that the International Emergency Economic Powers Act allowed such action. The court stressed that Congress, not the president, holds tariff-setting powers.
The decision takes effect on 14 October, giving time for an appeal to the Supreme Court.
Trump calls ruling a disaster
Trump criticised the judgement on Truth Social. He warned that removing the tariffs would “literally destroy the United States”.
He called the judges partisan and predicted ultimate victory for America. He argued that the country must remain financially strong and protected.
Emergency powers argument rejected
Trump justified the tariffs under the IEEPA. He declared a national trade emergency, claiming imbalances threatened US security.
The court disagreed. In a 127-page opinion, it wrote that the law “neither mentions tariffs nor restricts presidential power to impose them”.
Judges underlined that Congress has historically kept authority over tariffs. They added that when lawmakers delegate such powers, they use explicit language.
Businesses and states behind lawsuits
The case stemmed from two lawsuits. Small businesses and US states filed complaints against Trump’s April executive orders.
His orders imposed a 10% tariff on nearly every country. They also introduced “reciprocal” tariffs against dozens of nations. Trump described the day as America’s “liberation” from unfair trade.
Earlier, the Court of International Trade had already declared the tariffs unlawful. That judgement was put on hold during the appeal.
Tariffs on allies and China overturned
The appeals court struck down tariffs on Canada, Mexico and China. Trump said they were necessary to stop drug imports.
However, tariffs on steel and aluminium remain in place. Those came under a different presidential authority.
White House warns of economic chaos
Lawyers for the administration had issued stark warnings before the ruling. They said striking down the tariffs could trigger a collapse like 1929.
They argued the US might fail to repay trillions promised by foreign partners. Such failure could lead to national weakness and financial ruin.
The ruling also questions tariff agreements that countries negotiated with Washington.
Supreme Court showdown expected
The case is now likely bound for the Supreme Court. The justices have recently blocked presidents from expanding power without clear congressional approval.
During Joe Biden’s presidency, the court overturned climate measures and student debt relief. Both fell under the “major questions doctrine”.
The Supreme Court must now decide if Trump’s tariffs represent unlawful overreach or legitimate presidential authority.
Conservative court could favour Trump
The appeals court’s bench included only three Republican appointees out of eleven. Trump lost in that forum.
The Supreme Court is different. Six of its nine justices are Republican appointees, with three chosen by Trump himself.
This balance could shape the outcome of a case that may redefine presidential power over trade.
