U.S. Court Declares Trump's Tariffs Illegal, Challenging Presidential Authority

Tue Sep 30 2025 07:57:49 GMT+0300 (Eastern European Summer Time)

In a landmark ruling, a U.S. appeals court declares that numerous tariffs imposed by former President Donald Trump are illegal, impacting international trade policies significantly.

A recent ruling by the U.S. Court of Appeals for the Federal Circuit determined that many tariffs implemented by Donald Trump during his presidency are illegal, as they exceed executive authority granted under the International Emergency Economic Powers Act. This court decision could reshape U.S. trade policy and restore Congress's powers over tariffs. Though the ruling will not take immediate effect, it reflects growing tensions over the balance of power regarding trade matters.

A US appeals court has ruled that most tariffs issued by US President Donald Trump are illegal, potentially removing a foreign policy tool that Trump has used extensively during his second term in office.

The ruling affects Trump's 'reciprocal' tariffs imposed on most countries around the world, as well as other tariffs slapped on China, Mexico, and Canada.

In a 7-4 decision, the US Court of Appeals for the Federal Circuit rejected Trump's argument that the tariffs were permitted under his emergency economic powers act, calling them 'invalid as contrary to law.'

The ruling will not take effect until 14 October to give the administration time to ask the Supreme Court to take up the case.

Trump had justified the tariffs under the International Emergency Economic Powers Act (IEEPA), which grants the president power to act against 'unusual and extraordinary' threats. He declared a national emergency on trade, arguing that an imbalance is harmful to US national security. However, the court ruled that imposing tariffs is not within the president's mandate, and that they are 'a core Congressional power.'

The 127-page ruling states that the IEEPA 'neither mentions tariffs nor has procedural safeguards that contain clear limits on the President's power to impose tariffs.'

As such, the power to impose taxes and tariffs continues to belong to Congress, with the court asserting that the IEEPA does not override this authority.

In its ruling, the court noted that it is unlikely Congress intended to grant the President unlimited authority to impose tariffs when they passed the law.

The ruling stems from two lawsuits filed by small businesses and a coalition of US states following Trump's executive orders in May, which imposed a 10% tariff on countries worldwide, along with reciprocal tariffs on a dozen nations. Trump's statements characterized this day as America’s 'liberation day' from unfair trade policies.

The ruling also affects tariffs on Canada, Mexico, and China, which Trump argues are necessary to thwart the importation of drugs and illegal migrants.

It is important to note that Friday's ruling does not apply to tariffs imposed on steel and aluminum, which were enacted under a different presidential authority. Additionally, a New York-based Court of International Trade declared these tariffs unlawful in a separate ruling that has been appealed by the White House.