A US appeals court has struck down most of Donald Trump’s tariffs, ruling them unlawful. The decision undermines one of his central trade strategies and sets the stage for a Supreme Court showdown.
The judgement voids Trump’s “reciprocal” tariffs against dozens of countries. It also cancels levies placed on China, Mexico and Canada.
Judges strip tariffs of legal ground
In a 7-4 ruling, the US Court of Appeals for the Federal Circuit declared Trump’s tariffs “invalid as contrary to law”.
The judges rejected his reliance on the International Emergency Economic Powers Act. They said tariff-setting is the constitutional responsibility of Congress.
The ruling will take effect on 14 October unless the Supreme Court steps in.
Trump brands decision a threat to America
Trump condemned the court on Truth Social. He warned that overturning the tariffs would “literally destroy the United States”.
He accused the judges of bias and predicted America would prevail. Trump insisted the tariffs were vital to protect national and financial strength.
Emergency law defence fails
Trump had justified the tariffs by declaring a trade emergency under the IEEPA. He argued that trade deficits threatened national security.
The court dismissed this reasoning. In its 127-page opinion, it wrote that the law “neither mentions tariffs nor limits presidential authority in this way”.
The judges stressed that Congress has always held tariff powers and only delegates them with explicit language.
Lawsuits from states and firms triggered ruling
Two lawsuits led to the case. Small businesses and US states challenged Trump’s April executive orders.
His orders placed a 10% tariff on nearly every nation. They also added “reciprocal” tariffs on dozens more. Trump described the move as a “liberation” from unfair trade.
The Court of International Trade had already found the tariffs unlawful, but its ruling was paused pending appeal.
Tariffs on Canada, Mexico and China scrapped
The appeals court decision cancels tariffs on Canada, Mexico and China. Trump argued these measures were needed to fight drug imports.
However, tariffs on steel and aluminium remain in force. They were enacted under separate presidential authority.
White House issues dire warnings
Before the ruling, White House lawyers warned of economic disaster. They said removing the tariffs could cause a collapse like 1929.
They argued that the US might fail to repay trillions already pledged by foreign governments. Such failure, they claimed, could weaken security and cripple the economy.
The decision also casts doubt on trade agreements that offered lower tariffs in exchange for concessions.
Supreme Court likely to intervene
The case now appears bound for the Supreme Court. The justices have repeatedly reined in presidents who acted without clear congressional approval.
Under Joe Biden, the court struck down climate rules and cancelled student debt relief. Both were overturned using the “major questions doctrine”.
The justices must now decide whether Trump’s tariff plan was presidential overreach or lawful action.
Conservative majority looms over outcome
Trump lost in the appeals court, where only three of eleven judges were Republican appointees.
The Supreme Court has a very different makeup. Six of nine justices are conservatives, including three nominated by Trump himself.
That majority could heavily influence a case that may redefine presidential power over trade.
