A US federal appeals court has declared most of President Donald Trump’s global tariffs unlawful, raising the prospect of a major legal confrontation that could unravel a key pillar of his trade and foreign policy agenda.
The ruling affects Trump’s “reciprocal” tariffs on dozens of countries and levies imposed on China, Mexico, and Canada.
In a 7–4 decision, the US Court of Appeals for the Federal Circuit rejected Trump’s claim that the measures were authorized under the International Emergency Economic Powers Act (IEEPA). The judges said the tariffs were “invalid as contrary to law” and violated congressional authority.
The judgment, however, will not take effect until 14 October, giving the administration time to petition the Supreme Court.
Trump sharply criticised the decision on Truth Social, calling it “highly partisan.” He wrote: “If allowed to stand, this Decision would literally destroy the United States of America… If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak, and we have to be strong.”
The former president had justified the tariffs by declaring a national emergency on trade, arguing that trade imbalances endangered US national security. However, the court said tariff-setting is “a core Congressional power” that the executive cannot assume under IEEPA.
The 127-page ruling emphasized that the 1977 statute “neither mentions tariffs (or any of its synonyms) nor has procedural safeguards that contain clear limits on the President’s power to impose tariffs.” Whenever Congress intends to delegate such authority, the judges wrote, it does so “explicitly” using terms such as “tariff” or “duty.”
The case stemmed from lawsuits brought by small businesses and a coalition of states after Trump’s April executive orders. Those directives introduced a baseline 10% tariff on nearly all trading partners and additional “reciprocal” tariffs, which Trump hailed as “liberation day” from unfair trade practices. In May, the Court of International Trade ruled against the tariffs, but that decision was stayed pending appeal.
Friday’s judgment also struck down tariffs on imports from Canada, Mexico and China, which Trump had argued were necessary to curb drug inflows. However, tariffs on steel and aluminium, imposed under a separate statute, remain unaffected.
White House lawyers had warned that invalidating the tariffs could trigger a 1929-style market crash and cripple US finances. They argued that revoking the president’s tariff authority under IEEPA “would have catastrophic consequences for our national security, foreign policy, and economy.”
The ruling also casts doubt on tariff agreements some countries struck with Washington during Trump’s presidency.
Legal analysts expect the case to move swiftly to the Supreme Court, which has curtailed presidential efforts to expand authority without explicit congressional backing in recent years. The justices may determine whether Trump’s sweeping tariff programme constitutes executive overreach or is within established presidential powers.
While the appellate court ruling is a setback for Trump, the White House may take some comfort because only three of the panel’s 11 judges were appointed by Republicans. By contrast, the Supreme Court currently has six Republican-appointed justices, including three nominated by Trump himself.
Source: BBC
SMS/
