Court Ruling Challenges Trump’s Tariffs: What Lies Ahead?

Tue Oct 21 2025 03:15:49 GMT+0300 (Eastern European Summer Time)

The US Court of Appeals has deemed Donald Trump's tariffs illegal, claiming an overreach of presidential powers. This ruling could lead to significant shifts in US trade policy and economic strategy.

A federal appeals court has ruled that most of Donald Trump's tariffs are illegal, asserting that the president overstepped his authority under emergency powers. The decision prevents immediate changes to the tariffs, but sets the stage for a likely Supreme Court appeal. As various stakeholders anticipate the implications of this ruling, the future of US trade relations and economic conditions hang in the balance.

A federal appeals court has ruled that most of Donald Trump's tariffs are an overreach of his use of emergency powers as president.

The so-called reciprocal tariffs - imposed on nearly every country the US trades with - are being illegally imposed, the US Court of Appeals said on Friday.

The decision upholds a ruling in May from the Court of International Trade, which also rejected Trump's argument that his global tariffs were permitted under an emergency economic powers act.

Many of the tariffs that would be affected by the ruling stem from an announcement in April of a flat 10% rate on imports from all countries, which Trump said would even out unfair trade relations with the US.

The court did not halt the tariffs but instead said they would remain in place until mid-October, setting up a further legal challenge in the US Supreme Court.

In its 7-4 decision, the appellate court backed a lower court's finding that Trump did not have the authority to impose global tariffs, primarily influenced by the International Emergency Economic Powers Act (IEEPA), which the judges stated did not grant the power to impose tariffs, duties, or the like.

Trump criticized the judgment, calling it a disaster for the country and claimed that it would destroy the United States if left unchecked.

The IEEPA permits a president to act in times of national emergency, but the appeals court found it did not provide a basis for tariff imposition.

This ruling not only refutes a centerpiece of Trump's policy but may have immediate ramifications for the US economy, potentially causing instability in global markets as countries reassess their trade strategies.

Moving forward, the case is likely to escalate to the Supreme Court, with Trump signaling his intention to appeal. If the Supreme Court upholds the ruling, it could challenge both the legality of the tariffs and Trump's political influence as a negotiator on trade issues.

Current tariffs, particularly on goods from nations such as China and Mexico, will remain until mid-October, after which they may no longer be enforceable.