US President Donald Trump faced a significant setback on Saturday as his favourite policy in his second presidential term was challenged by a federal appeals court. The court, in its judgment, declared most of the Trump tariffs unlawful. POTUS, however, rejected the ruling, saying that his trade policies remain in effect and said his administration will take the case to the Supreme Court.
What Donald Trump Said On Tariff Judgment
Reacting to the ruling, Trump insisted that his tariffs are still in force.
“ALL TARIFFS ARE STILL IN EFFECT! 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,” he said.
The president warned of economic consequences if the tariffs were struck down.
“If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak, and we have to be strong. The U.S.A. will no longer tolerate enormous Trade Deficits and unfair Tariffs and Non Tariff Trade Barriers imposed by other Countries, friend or foe, that undermine our Manufacturers, Farmers, and everyone else. If allowed to stand, this Decision would literally destroy the United States of America.”
If this decision stands and all of Trump’s tariffs are found to be illegal (which they are) then every dollar they collected will have to be refunded.
That’s about $300B. pic.twitter.com/SUrm8UabUY
— Turnbull (@cturnbull1968) August 29, 2025
Trump also used the start of the Labor Day weekend to reiterate his stance on trade protectionism.
“At the start of this Labor Day weekend, we should all remember that TARIFFS are the best tool to help our Workers, and support Companies that produce great MADE IN AMERICA products. For many years, Tariffs were allowed to be used against us by our uncaring and unwise Politicians. Now, with the help of the United States Supreme Court, we will use them to the benefit of our Nation, and Make America Rich, Strong, and Powerful Again! Thank you for your attention to this matter.”
What Appeals Court Ruled on Trump Tariffs
The ruling came from the US Court of Appeals for the Federal Circuit in Washington, DC, which determined that Trump had exceeded his authority by imposing tariffs through emergency powers.
“The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax,” the court said in its order, as reported by Reuters.
The ruling invalidated Trump’s so-called “reciprocal” tariffs introduced in April during the trade war, as well as a separate set of tariffs announced in February on China, Canada, and Mexico. However, the decision did not affect other tariffs – such as those on steel and aluminum – that were imposed under different statutes.
What is Trump’s Legal Justification for His Tariffs?
Trump had justified his tariffs under the International Emergency Economic Powers Act (IEEPA), a 1977 law traditionally used to impose sanctions or freeze assets during national emergencies. He was the first US president to invoke IEEPA as the legal foundation for tariffs.
The court rejected this interpretation, stating, “It seems unlikely that Congress intended, in enacting IEEPA, to depart from its past practice and grant the President unlimited authority to impose tariffs.”
Also Read: Most of Trump’s Tariffs Are Illegal, US Appeals Court Rules, Setting Up Supreme Court Showdown
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
