Trump’s Tariff Power Struck Down by Federal Appeals Court in Major Blow
Donald Trump’s sweeping tariff policies have just suffered a massive setback after a federal appeals court in Washington DC ruled that the former president overstepped his constitutional authority.
In a 7-4 ruling, the court declared that while US law gives the president significant powers during a national emergency, it does not grant the authority to impose tariffs, duties, or taxes. Judges noted that many of Trump’s tariffs were “unbounded in scope, amount, and duration”, exceeding the limits of the very law his administration leaned on.
This decision is seen as the biggest blow yet to Trump’s controversial trade policies, setting up a likely showdown at the US Supreme Court. However, the court clarified that its ruling would not take effect until October 14.
Shortly after markets closed for the long weekend, Trump erupted on social media, writing: “ALL TARIFFS ARE STILL IN EFFECT!” He blasted the decision as politically motivated and warned: “If allowed to stand, this decision would literally destroy the United States of America.”
Trump defended his tariffs as the best tool to protect American workers and promote “MADE IN AMERICA” products, even as the ruling specifically voided his ‘Liberation Day’ tariffs—a blanket 10% levy on nearly all trading partners—and his so-called “reciprocal tariffs.”
Trump’s Defense vs. The Court’s Rejection
Trump has long argued that he had the power to impose tariffs under the International Emergency Economic Powers Act (IEEPA), citing reasons like trade deficits, fentanyl trafficking, and immigration. But the court pushed back, making it clear that Congress never intended IEEPA to grant unlimited tariff powers.
The ruling stressed: “IEEPA neither mentions tariffs (or any of its synonyms) nor provides safeguards that set limits on such presidential power.” Instead, the judges pointed out that other statutes explicitly mention tariffs and provide clear boundaries—something IEEPA does not.
White House Reaction & Plan B
The Trump administration, anticipating this defeat, filed emergency statements earlier in the day from Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Secretary of State Marco Rubio, warning that an immediate tariff shutdown would be a “dangerous diplomatic embarrassment” for the US.
White House spokesperson Kush Desai quickly pushed back, insisting that Trump lawfully exercised tariff powers granted by Congress, and that the administration would continue fighting for an “ultimate victory.”
Meanwhile, trade experts like William Reinsch said Trump’s team had long prepared for this outcome and was working on a Plan B to keep the tariffs alive through other legal channels.
The Bigger Picture
The case, VOS Selections Inc v. Trump, has been brewing since May, when a US trade court first ruled Trump’s tariffs “exceed any authority granted to the president.” Although temporarily paused, the appeals court’s Friday ruling marks a decisive rejection of Trump’s legal strategy.
The judges were openly skeptical during oral arguments in July. One remarked bluntly: “The IEEPA doesn’t even say tariffs. Doesn’t even mention them.”
By underlining that Congress uses clear and explicit language when it intends to grant tariff powers, the court effectively dismantled Trump’s justification.
Global Impact
Trump’s aggressive tariff moves have rattled global markets, sparked trade wars, and fueled fears of rising inflation. With this ruling, the future of his tariff legacy now hangs in legal limbo—awaiting what could be a historic Supreme Court battle.