Washington, August 30, 2025: A divided U.S. Court of Appeals for the Federal Circuit has struck down most of former President Donald Trump’s tariffs, ruling them unlawful and setting up a potential showdown before the Supreme Court.
In a 7-4 decision, the court found that Trump had overstepped his authority by using the International Emergency Economic Powers Act (IEEPA) to justify tariffs on imports. Judges noted that while the statute grants presidents broad emergency powers, it does not explicitly authorize tariffs or taxes.
The ruling applies to Trump’s “reciprocal tariffs” imposed in April and additional levies introduced in February on China, Canada, and Mexico.
However, tariffs issued under other laws — including those on steel and aluminum — remain in effect.
Trump dismissed the ruling as “partisan”, warning on Truth Social that lifting the tariffs would be a “total disaster” for the U.S. He expressed confidence that the Supreme Court’s conservative majority would reverse the decision.
Trump’s administration had argued that trade deficits, loss of manufacturing, and cross-border fentanyl justified a national emergency, granting him tariff powers. The court disagreed, fueling a wider debate over the limits of presidential authority on trade. Markets reacted nervously, with analysts warning that trade uncertainty could disrupt corporate planning.
“The last thing corporate America needs is more trade uncertainty,” said Art Hogan, chief market strategist at B. Riley Wealth.
The court has allowed the tariffs to remain in place until October 14, giving Trump’s team time to appeal to the Supreme Court. Experts believe the final outcome could redefine presidential trade powers and reshape U.S. economic policy for years to come.
