US, Aug.30,2025:President Trump responded on his social media platform, calling the ruling “a total disaster” and blasting the court as partisan
What Did the Court Decide?
In a decisive 7–4 ruling, the federal appeals court ruled that Trump tariffs ruled illegal, as the International Emergency Economic Powers Act does not authorize imposing broad import duties—powers that belong explicitly to Congress. Yet, the court issued a stay allowing the tariffs to remain in effect until October 14, giving the administration time to appeal to the U.S. Supreme Court.
Which Tariffs Are Affected—and Which Aren’t?
- Affected (Invalidated):
- The “Liberation Day” reciprocal tariffs (10% baseline on nearly all countries)
- Fentanyl-related tariffs targeting Canada, China, and Mexico.
- Unaffected (Still Valid):
- Sector-specific tariffs such as those on steel, aluminum, and automobiles, imposed under other legal authorities.
Trump’s Outburst and Political Fallout
President Trump responded on his social media platform, calling the ruling “a total disaster” and blasting the court as partisan. He vowed to fight the decision all the way to the Supreme Court, insisting that removing these tariffs would devastate the nation’s economy.
Legal Background-IEEPA and Liberation Day Tariffs
- IEEPA (International Emergency Economic Powers Act): Enacted in 1977, this law allows the president to address “unusual and extraordinary” threats, mostly through sanctions or freezing assets—not tariffs.
- Liberation Day Tariffs: On April 2, 2025, Trump signed Executive Order 14257, invoking IEEPA to impose a sweeping 10% baseline tariff and country-specific “reciprocal” tariffs in an effort to counter trade imbalances. Another order, 14256, targeted Chinese imports tied to opioids.
- Legal Challenges:
- May 28: The U.S. Court of International Trade struck down the tariffs in V.O.S. Selections, Inc. v. U.S.
- July 31: Federal appeals court heard oral arguments; several judges appeared skeptical.
- August 29: The appeals court en banc upheld the lower court, again finding the tariffs exceeded presidential authority under IEEPA—setting stage for Supreme Court appeal.
What Happens Next? Supreme Court & Refunds
- Appeal to the Supreme Court: With the stay in place until October 14, the White House will almost certainly appeal to the Supreme Court.
- Potential Refunds: If ultimately invalidated, importers might demand refunds, possibly totaling tens of billions of dollars—creating significant financial strain on the U.S. Treasury.
Why This Matters – Broader Impacts
- Limits Executive Power: The ruling affirms that presidents cannot unilaterally impose tariffs without explicit congressional authorization, bolstering the constitutional division of authority.
- Critics argue this curbs aggressive executive trade actions; supporters see it as protecting legislative jurisdiction.
- Economic Uncertainty: Businesses and markets face prolonged uncertainty amid legal battles; affected industries—small businesses and importers especially—stand to benefit if tariffs are rescinded.
- Implications for Trade Policy: If upheld, the decision could reshape how future administrations pursue emergency economic actions, likely relying more on trade laws like the 1974 Trade Act (Sections 122 or 301) instead of IEEPA.
This decisive Trump tariffs ruled illegal verdict represents a pivotal moment in U.S. trade law: a dramatic judicial check on executive power, real economic repercussions for industries and consumers, and a looming constitutional battle before the Supreme Court. As the legal drama unfolds, what’s at stake goes beyond tariffs—it’s about the balance of power and the future of trade policymaking in America.
