A US appeals court has declared most tariffs introduced by Donald Trump illegal. The decision delivers a significant blow to his trade agenda and points toward a looming Supreme Court battle.
The ruling cancels Trump’s “reciprocal” tariffs on dozens of countries. It also strikes down levies targeting China, Mexico and Canada.
Judges say tariffs violate the law
The US Court of Appeals for the Federal Circuit ruled 7-4 against Trump. Judges described his tariffs as “invalid as contrary to law”.
They rejected his argument that the International Emergency Economic Powers Act gave him authority. The court stressed that tariff powers remain the responsibility of Congress.
The ruling will take effect on 14 October unless overturned by the Supreme Court.
Trump warns of disaster
Trump criticised the ruling on Truth Social. He warned that removing the tariffs would “literally destroy the United States”.
He accused the appeals court of being partisan. Trump argued the tariffs were vital for national strength and predicted victory in the end.
Emergency powers argument dismissed
Trump had defended his policy under the IEEPA. He declared a trade emergency and said imbalances endangered national security.
The judges disagreed. In a 127-page ruling, they wrote that the IEEPA “neither mentions tariffs nor contains safeguards limiting presidential power to impose them”.
The court underlined that Congress has historically reserved tariff powers for itself and only delegates them explicitly.
Lawsuits by states and businesses
The ruling followed two lawsuits filed by small businesses and US states. They challenged Trump’s April executive orders.
The orders imposed a 10% tariff on nearly every nation. They also established “reciprocal” tariffs against dozens more. Trump called the move America’s “liberation day” from unfair trade.
Earlier, the Court of International Trade had already declared the tariffs unlawful. That judgement was paused during appeal.
Tariffs on neighbours and China struck down
The appeals court cancelled tariffs on Canada, Mexico and China. Trump had claimed they were necessary to fight drug imports.
Tariffs on steel and aluminium remain unaffected. They were introduced under separate presidential authority.
White House warns of financial collapse
Before the ruling, White House lawyers predicted dire consequences. They said removing the tariffs could trigger a collapse similar to 1929.
They argued the US might fail to repay trillions already promised by foreign partners. Such failure, they warned, could weaken security and damage the economy.
The decision also casts doubt on tariff agreements made with foreign governments.
Supreme Court expected to weigh in
The case is now likely headed to the Supreme Court. The justices have recently limited presidents who acted without explicit congressional approval.
During Joe Biden’s presidency, the court struck down climate measures and student debt relief. Both were blocked under the “major questions doctrine”.
The justices must now decide whether Trump’s tariff programme was unlawful overreach or legitimate executive authority.
Conservative majority could shift outcome
Trump lost in the appeals court, where only three of eleven judges were Republican appointees.
The Supreme Court presents a different picture. Six of nine justices are conservatives, including three appointed by Trump himself.
That majority could heavily influence a ruling that may reshape presidential power over trade.
