US Court Declares Trump Tariffs Illegal, Supreme Court Showdown Looms

Court Deals a Blow to Trump’s Trade Policy

In a major legal setback, a US appeals court ruled that many of former President Donald Trump’s tariffs are illegal. The decision, delivered in a 7–4 vote by the Federal Circuit Court of Appeals, struck down global levies imposed on China, Mexico, Canada, and dozens of other countries.

The judges rejected Trump’s claim that the tariffs were valid under the International Emergency Economic Powers Act (IEEPA). Instead, they concluded the tariffs were “contrary to law”, stressing that the power to set trade duties belongs to Congress.

The ruling does not take immediate effect. The court has given the administration until October 14 to ask the Supreme Court to review the case.

What Tariffs Are Affected

The ruling primarily targets Trump’s “reciprocal” tariffs — a 10% baseline duty on most countries that he announced in April. These were followed by additional tariffs on Canada, Mexico, and China. Trump argued the duties protected the US from unfair trade practices and curbed harmful imports.

However, not all tariffs are impacted. Duties on steel and aluminum, imposed under a different law, remain in place. This distinction means that while part of Trump’s tariff policy collapses, other parts stay intact.

Why the Court Rejected Trump’s Argument

The judges highlighted a simple point: the IEEPA does not mention tariffs. Nor does it give the president unlimited power to impose them.

Whenever Congress grants tariff-setting authority, the law stated, it does so explicitly by using terms like “tariff” or “duty.” By using IEEPA to justify sweeping tariffs, Trump overstepped his mandate.

The court also noted that the 1977 law was never meant to allow presidents to bypass Congress in such matters. In their words, imposing tariffs is a “core Congressional power.”

Trump Pushes Back

Trump reacted furiously on Truth Social, calling the ruling a disaster for the country. He warned that removing tariffs would make America “financially weak” and could trigger a collapse similar to the Great Depression.

“Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end,” Trump wrote.

He argued that his tariffs strengthened US national security and were essential to protecting American jobs.

Implications for Trade and Markets

This ruling creates fresh uncertainty in global trade. Countries like China, Mexico, and Canada may push for changes to trade agreements that were based on Trump-era tariffs. If the tariffs disappear, supply chains and pricing structures could shift once again.

For investors, the outcome may determine whether markets see more stability or volatility in the months ahead. If the Supreme Court upholds the ruling, businesses could face fewer unexpected tariffs. However, they may also see slower government response to trade disputes.

What Comes Next

Most analysts expect the case to land before the US Supreme Court. With six Republican-appointed justices, including three selected by Trump, the outcome remains unpredictable.

Recent decisions show the Supreme Court has been skeptical of presidential overreach. It has already struck down major initiatives on student loan forgiveness and environmental regulation. This pattern suggests the justices may also limit presidential powers on tariffs.

Still, Trump’s influence on the court means the final ruling is far from certain. Until then, businesses, markets, and trade partners will watch closely.

Key Takeaways

• Court ruling: Trump tariffs declared illegal under IEEPA.

• Tariffs struck: Reciprocal tariffs on China, Mexico, and Canada invalidated.

• Still valid: Steel and aluminum tariffs remain in place.

• Next step: Case likely heads to the Supreme Court.

• Market impact: Trade agreements and supply chains face new uncertainty.

Final Word

The Trump tariffs ruling is more than just a legal battle. It raises bigger questions about the limits of presidential power and the role of Congress in shaping trade.

For businesses and investors, the coming months will be critical. If the Supreme Court sides with Trump, tariffs could remain a central tool of US trade policy. If not, the ruling could mark a turning point, reshaping how future presidents handle global trade disputes.

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