Federal Appeals Court Declares Trump’s Tariffs Illegal: What's Next?

Sun Oct 26 2025 08:40:42 GMT+0200 (Eastern European Standard Time)

A recent court ruling has invalidated many of Donald Trump's tariffs, stating they exceed presidential authority under emergency powers. The implications for U.S. economic policy and international trade are significant as the country prepares for potential Supreme Court deliberations.

The U.S. Court of Appeals has ruled that the majority of Donald Trump's tariffs are illegally imposed, going beyond the authority granted under the International Emergency Economic Powers Act. While the tariffs remain in place until mid-October, the ruling may prompt a Supreme Court case that could reshape U.S. trade laws and economic policy. The ruling has led to criticisms from Trump, who labeled it a partisan decision and warned it could harm the nation. The outcome will affect international trade, the U.S. economy, and Trump's political strength moving forward.

Federal Appeals Court Declares Trump’s Tariffs Illegal: What's Next?

2 hours ago

Johanna ChisholmBBC News

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.

This decision affirms a previous ruling from the Court of International Trade, rejecting Trump's argument that his global tariffs were sanctioned under an emergency economic powers act. Major tariffs, stemming from Trump’s April announcement of a flat 10% rate on imports from all countries, aimed at redressing 'unfair' trade relations, now face legal scrutiny.

Though the court did not immediately halt the tariffs, they will remain enforced until mid-October, allowing time for a potential Supreme Court challenge.

What did the Appeals Court Say?

In a 7-4 decision, the appellate court supported a lower court's finding that Trump did not have the authority to impose global tariffs, citing the International Emergency Economic Powers Act (IEEPA) which judges stated did not grant 'the power to impose tariffs, duties, or the like.' The appeals court labeled Trump’s tariffs as 'invalid as contrary to law.'

Trump criticized the decision on Truth Social, claiming it is a partisan ruling that threatens the country’s stability.

Why is This Important?

This ruling represents a setback for Trump's policy objectives and could have significant implications for the U.S. economy and global markets. The uncertainty surrounding tariffs affects business operations and could delay trade relationships as countries anticipate the Supreme Court's input on the matter.

What Happens Next?

The case is headed to the U.S. Supreme Court, as Trump seeks to overturn the appellate decision. The conservative majority may lean toward reversing this ruling, potentially supporting the president's approach to emergency tariffs.

Are There Still Tariffs in Place?

The ruling affects Trump's 'reciprocal tariffs' set for many countries, with these tariffs remaining enforced until mid-October. The future remains uncertain as the administration prepares its appeal, while tariffs under different authority, such as those on steel and aluminum, remain intact.