A divided federal appeals court has ruled that President Donald Trump went beyond his legal authority when he used emergency powers to impose sweeping global tariffs. However, the tariffs remain in place for now, keeping alive a legal and political battle with major implications for U.S. trade policy.
Tariffs Declared Unlawful, But Still Active
The U.S. Court of Appeals for the Federal Circuit found that the International Emergency Economic Powers Act (IEEPA)—the statute Trump invoked—does not clearly give a president the authority to impose tariffs, duties, or taxes. In a 7–4 decision, the court said Congress never delegated tariff-making powers under IEEPA.
Despite the ruling, the judges allowed the tariffs to stay in effect while the administration considers its next move. The decision extends uncertainty for businesses, trading partners, and workers impacted by these duties.
Supreme Court Could Decide
The administration now faces a choice: appeal directly to the U.S. Supreme Court or allow the Court of International Trade to revisit the case first. The justices have previously sided with presidents on trade-related powers, but the court’s conservative majority has also applied a strict interpretation of congressional intent under the major questions doctrine.
This doctrine—recently used to strike down Former President Joe Biden’s climate and student loan policies—requires clear congressional approval before federal authorities make sweeping economic decisions. The appeals court applied the same reasoning here, ruling that tariffs of this scale need explicit legislative backing.
Administration Officials Warn of Diplomatic Fallout
Top officials, including Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Secretary of State Marco Rubio, cautioned that voiding the tariffs would create “dangerous diplomatic embarrassment.” They argued that tariffs remain a key bargaining tool in negotiations with the European Union, Japan, South Korea, and other partners.
While the White House has leaned heavily on IEEPA, it has also explored other legal frameworks such as Section 232 of the Trade Expansion Act to maintain tariffs on products ranging from lumber to semiconductors. These mechanisms, however, are slower and carry more procedural hurdles than Trump’s original emergency-based approach.
Trump Responds with Defiance
On Truth Social, President Donald Trump dismissed the court’s ruling as partisan and insisted that tariffs are vital for U.S. economic strength. “ALL TARIFFS ARE STILL IN EFFECT!” he wrote, warning that removing them would lead to “financial weakness” and undermine American workers and industries.
He argued that tariffs remain the best tool to protect U.S. farmers, manufacturers, and workers from “unfair trade barriers” imposed by foreign nations. Trump vowed to fight the ruling all the way to the Supreme Court if necessary.
What’s Next?
The ruling leaves the future of Trump’s tariffs uncertain. For now, they continue to apply, shaping global trade flows and fueling tensions with allies and competitors alike. If the case reaches the Supreme Court, it could set a defining precedent for how much power U.S. presidents truly have over international trade policy.
The coming months will reveal whether Trump’s tariff strategy survives judicial scrutiny—or if Congress will ultimately need to reclaim its role in shaping trade law.
Bessent Confident on Tariffs, Plans Backup Option
Update: September 1st, 2025
U.S. Treasury Secretary Scott Bessent said he believes the Supreme Court will allow President Trump’s use of emergency powers to keep tariffs in place, even though a lower court ruled against them. He explained that trade deficits and the fentanyl crisis justify the move. If needed, the administration is ready to use another law from 1930 to keep tariffs going. Current tariffs on countries linked to fentanyl imports will stay until October 14. Bessent also downplayed concerns about Russia, China, and India working together, stressing that the U.S. is focused on fixing trade imbalances and limiting Russian oil sales.
Trump Fights Court Ruling on Tariffs, Warns of Economic Trouble
Update: September 2, 2025
President Trump called a federal court decision striking down most of his global tariffs an “emergency” and said his team will appeal to the Supreme Court. He claimed the tariffs brought in $17 trillion for the U.S., though experts say that number is far higher than reality. Trump warned that ending the tariffs could hurt the economy, pointing to falling stocks and rising bond yields. The White House argued the tariffs are key for trade talks and government revenue, and noted they will stay in place until October 14 while the legal fight continues.
Trump Warns Trade Deals Could Collapse if Tariffs Are Overturned
Update: September 3, 2025
President Donald Trump cautioned that trade agreements with the European Union, Japan, and South Korea may be revoked if U.S. courts rule his global tariffs illegal. From the Oval Office, Trump stressed that tariffs were crucial in negotiating favorable trade terms and driving economic growth. His administration intends to seek an expedited Supreme Court review after lower courts declared his use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs unlawful. The legal battle casts uncertainty over trillions of dollars in global trade, with Trump warning of severe economic fallout if his authority to set tariff levels is invalidated.
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