A US federal appeals court has ruled that most tariffs imposed under former President Donald Trump were unlawful, setting up a potential Supreme Court battle that could reshape US trade policy.
In a 7-4 decision, the US Court of Appeals for the Federal Circuit said Trump’s “reciprocal” tariffs on dozens of countries, as well as levies on China, Mexico, and Canada, were “invalid as contrary to law.” The ruling, however, does not affect Trump’s separate tariffs on steel and aluminium.
The judges rejected Trump’s reliance on the International Emergency Economic Powers Act (IEEPA), arguing that the law never granted presidents authority to set tariffs. “Tariffs are a core Congressional power,” the ruling stated, adding that Congress has historically delegated such authority only with explicit language.
The case stems from lawsuits filed by small businesses and a coalition of US states after Trump’s 2018–2019 executive orders slapped a baseline 10% tariff on nearly all imports and additional duties on countries deemed to have “unfair trade practices.”
Trump denounced the ruling on Truth Social, warning that striking down the tariffs would “literally destroy the United States of America,” and arguing that eliminating them would weaken the nation financially.
The court’s decision will not take effect until October 14, giving the administration time to seek Supreme Court review. With six Republican-appointed justices, three of whom were chosen by Trump, the high court could deliver a final judgment on the extent of presidential power in trade policy.
Analysts say the ruling could have far-reaching implications for businesses and international partners who entered into trade agreements under Trump’s tariff regime. It also highlights the ongoing tension between Congress and the executive branch over control of economic policy, echoing recent Supreme Court rulings that have curbed presidential authority in other areas.
