A federal appeals court has dealt a major blow to former President Donald Trump’s tariff strategy, ruling that he unlawfully relied on emergency powers to impose sweeping import taxes. The court emphasized that only Congress holds the constitutional authority to levy tariffs, limiting the president’s ability to reshape trade policy through unilateral action.
Why the Court Rejected Trump’s Tariffs
The ruling centered on the International Emergency Economic Powers Act (IEEPA). Judges stated that the law does not authorize tariffs, noting that Congress deliberately avoided using words like “duty” or “tax” in the statute. Without explicit congressional approval, the court said, Trump’s sweeping tariffs—dubbed “Reciprocal” and “Trafficking” tariffs—exceeded presidential authority.
Tariffs Still in Place for Now
Although the court found Trump overstepped, the tariffs remain active until October. This delay allows the administration time to appeal to the Supreme Court. Trump, who considers tariffs a cornerstone of his economic plan, warned of a “total disaster” if they were removed. Meanwhile, Commerce and Treasury officials cautioned that suspending tariffs could disrupt negotiations with U.S. allies and harm trade deals already in progress.
The Larger Political and Economic Stakes
The decision highlights the balance of power between Congress and the president, underscoring constitutional limits. Plaintiffs, including small businesses and state governments, called the ruling a victory for American democracy. Still, dissenting judges argued IEEPA does give presidents some authority to regulate trade via tariffs. With the issue heading back to lower courts and a likely Supreme Court showdown, uncertainty looms over U.S. trade policy.
What Comes Next?
If upheld, the ruling could significantly restrict presidential trade powers, forcing future administrations to seek congressional approval for broad tariff programs. That would reshape how the U.S. negotiates trade disputes and redefines executive authority. For now, “Liberation Day” for businesses hit hardest by tariffs remains on hold, pending further legal battles.
