U.S. Court of Appeals Rules Most of Trump’s Global Tariffs Are Unlawful but Has Not Halted Their Implementation
A U.S. federal appeals court has ruled that most of President Donald Trump’s global tariffs are illegal, finding that he exceeded his authority in imposing them. However, while the case undergoes further review, the judges have allowed these tariffs to remain in effect.
On Friday, the U.S. Court of Appeals for the Federal Circuit upheld a previous ruling by the Court of International Trade, finding that Trump had wrongly invoked emergency laws to issue the tariffs. But the appellate court judges sent the case back to the lower court to determine whether the ruling applies to all parties affected by the tariffs or only to those directly involved in the case.
The 7-4 decision on Friday prolongs the suspense over whether Trump’s tariffs will ultimately stand. It had been widely expected that the case would next be brought before the Supreme Court for a final decision. The government may now seek Supreme Court review, and the Supreme Court has generally supported the president’s position on other matters. However, the White House could also choose to let the Court of International Trade reconsider the case first.
“All tariffs remain in effect!” Trump posted on Truth Social shortly after the ruling was released.
“Today, a highly partisan appeals court wrongly said our tariffs should be removed, but they need to know that the United States of America will ultimately win,” Trump wrote. “If these tariffs disappear, it will be a complete disaster for the country.”
Trillions of dollars in global trade are entangled in this legal battle. If the final ruling overturns Trump’s tariffs, his widely publicized trade agreements will be upended. The government would also have to deal with demands to refund the tariffs already collected.
In the May 30 ruling, the Court of International Trade found that Trump had improperly used the 1977 emergency powers law to implement broad tariffs. During oral arguments on July 31, judges on the Federal Circuit Court of Appeals also expressed similar doubts about Trump’s broad tariff powers under the International Emergency Economic Powers Act (IEEPA).
Fearing that the court might rule the tariffs illegal and immediately invalidate them, the U.S. government earlier on Friday submitted statements from Treasury Secretary Bessent, Commerce Secretary Lutnick, and Secretary of State Rubio, warning that such a move by the court would have serious foreign policy consequences. Bessent stated that this would result in “dangerous diplomatic embarrassment” for the United States.
“President Trump lawfully exercised the tariff authority granted to him by Congress to protect our national security and economic security from foreign threats,” White House spokesperson Kush Desai said in a statement. “The president’s tariffs remain in effect, and we look forward to ultimately prevailing in this matter.”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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