A federal appeals court has ruled that most Trump tariffs imposed under the International Emergency Economic Powers Act (IEEPA) are illegal. In a 7-4 decision, the U.S. Court of Appeals for the Federal Circuit declared that  President Donald Trump overstepped his authority when he introduced sweeping global tariffs, including his widely known “reciprocal” tariffs.

The ruling delivered a sharp blow to Trump’s aggressive trade policy, which has shaped U.S. relations with key partners like China, Canada, and Mexico. Judges emphasized that the power to impose tariffs belongs to Congress, not the executive branch.

“Tariffs are a core Congressional power,” the majority opinion stated. “The President’s actions exceeded the authority granted by law.”

Trump Responds to Ruling

Trump quickly condemned the appeals court as “highly partisan” and vowed that the Supreme Court will reverse the decision. He argued that eliminating Trump tariffs would devastate the U.S. economy and weaken its global position.

“If these tariffs ever went away, it would be a total disaster for the Country,” Trump wrote on Truth Social. “If allowed to stand, this decision would literally destroy the United States of America.”

The White House echoed his defiance, with spokesman Kush Desai insisting that the tariffs remain in effect for now. “We look forward to ultimate victory on this matter,” Desai said.

Case Background and Legal Challenges

The case, V.O.S. Selections v. Trump, consolidated lawsuits filed by a coalition of U.S. states and several small businesses. Plaintiffs argued that Trump tariffs harmed industries and violated constitutional limits on executive power.

This ruling marks the second consecutive defeat for Trump’s legal team. Earlier this year, the U.S. Court of International Trade also struck down the tariffs, ruling that they could not be justified under IEEPA.

Lawyers for the plaintiffs welcomed the decision. Jeffrey Schwab of the Liberty Justice Center said, “This decision protects American businesses and consumers from the uncertainty and harm caused by these unlawful tariffs.”

Neal Katyal, co-counsel in the case, called the judgment “a powerful reaffirmation of the Founders’ principle that Presidents must act within the rule of law.”

Read more: Why Is ‘Trump Dead’ Trending Worldwide? What Happened?

Economic and Strategic Implications

The Trump administration had argued that IEEPA allowed the President to impose broad tariffs to address national emergencies, including alleged fentanyl trafficking from abroad. Commerce Secretary Howard Lutnick warned that removing Trump tariffs could cause “massive and irreparable harm” to U.S. foreign policy and national security.

He cautioned that striking down the measures could prompt retaliation from trading partners, derail ongoing negotiations, and unwind existing trade deals.

Meanwhile, the Congressional Budget Office projected that tariffs would reduce U.S. deficits by $4 trillion over the next decade, adding another layer of complexity to the debate.

What Comes Next

The appeals court paused the enforcement of its ruling until October 14, giving Trump’s legal team time to appeal to the Supreme Court. Until then, Trump tariffs remain in effect.

The decision leaves the future of America’s trade policy uncertain. If the Supreme Court upholds the ruling, it could permanently limit the executive branch’s authority to impose tariffs without Congressional approval.

For now, businesses, consumers, and international partners await clarity on whether Trump tariffs will survive or collapse under judicial scrutiny.

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