US Court Rules Most Trump Tariffs Illegal, Impact Remains

UPDATE: A US federal appeals court has just ruled that most of President Donald Trump’s tariffs are illegal, a decision that could significantly impact international trade. In a decisive 7-4 ruling on October 6, 2025, the US Court of Appeals for the Federal Circuit confirmed that Trump exceeded his authority by using emergency economic powers to impose wide-ranging duties on numerous trading partners.

Despite this ruling, the court has allowed the tariffs to remain in place temporarily, giving the parties involved until mid-October to appeal to the Supreme Court. This development not only raises questions about Trump’s economic policies but also casts doubt on his trade agreements with major partners like the European Union.

The ruling emphasized that while the International Emergency Economic Powers Act (IEEPA) grants the President significant authority during a declared national emergency, it does not explicitly include the power to impose tariffs or duties. The judges noted that “none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax.”

In May, the US Court of International Trade ruled similarly, stating that Trump had overstepped his authority with his global levies. These tariffs have been a cornerstone of Trump’s economic strategy, impacting nearly all US trading partners with a baseline 10 percent duty and higher rates for numerous economies.

As the legal battle continues, the implications of this ruling are profound. If the Supreme Court decides to uphold the appeals court’s decision, it could dismantle a key part of Trump’s economic toolkit, potentially leading to shifts in trade dynamics, affecting prices for consumers and businesses alike.

With the tariffs remaining in place for now, all eyes are on the Supreme Court. What happens next could reshape US trade policy and influence negotiations with major economies globally. Stay tuned for updates as this story develops.