Samuel Omang
A U.S. federal appeals court has ruled that most of former President Donald Trump’s sweeping tariffs are illegal, marking a significant setback for his trade policy. The court determined that Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA), which does not grant presidents the power to impose broad tariffs.
The ruling specifically addressed tariffs imposed on countries like China, Canada, and Mexico, which were justified under emergency declarations related to issues such as drug trafficking and trade imbalances. However, targeted tariffs on items like steel and aluminum were not affected.
Despite the ruling, the tariffs will remain in effect temporarily until at least October 14, 2025, to allow time for the administration to appeal to the U.S. Supreme Court. President Trump criticized the decision, calling it a “total disaster for the country” and labeling the court as “highly partisan.”
If the Supreme Court upholds the ruling, the government may be required to refund tens of billions of dollars to affected importers. The case originated from a legal challenge brought by a small U.S. alcohol importer and several states, arguing that the president’s use of emergency powers to impose tariffs was unconstitutional. The outcome could have major implications for the future use of executive powers in trade matters.