One of the biggest legal blows has been dealt to Donald Trump where a US appellate court declared that a majority of his tariffs were unconstitutional. That ruling opens the door to a dramatic Supreme Court fight which would restructure trade policy and presidential authority in America.
Appeals Court Rejects Trump’s Tariffs Justification
The decision has implications on Trump’s much-bemoaned reciprocal tariffs on several nations, as well as specific actions on China, Mexico, and Canada.
The US Court of Appeals of the Federal Circuit ruled 7-4 that the argument presented by Trump, justification of tariffs, as an emergency economic power, was invalid. The judges referred to the tariffs as being against the law and restricted presidential powers on this area.
It has been left pending to October 14, allowing Trump legal team to appeal to Supreme Court.
Trump Criticises Court Decision on Tariffs
Trump responded to the verdict about Truth Social by sharply criticizing the court. He cautioned that lifting tariffs will destroy the United States.
He wrote: “If allowed to stand, this Decision would literally destroy the United States of America. 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.”
Court Rules Tariffs Are a Congressional Power
Trump used the International Emergency Economic Powers Act (IEEPA) arguing that it enabled him to impose duties in a bid to respond to foreign threats to the economy. However, the judges differed indicating that tariffs are one of the fundamental powers of Congress that could not be given to the president by the act.
The decision underlined that the 1977 legislation was not to be used to grant unbridled power. The judgment stated: “The IEEPA neither mentions tariffs (or any of its synonyms) nor has procedural safeguards that contain clear limits on the President’s power to impose tariffs.”
The court stated that in case Congress grants such powers, it does it directly using terms such as tariff or duty. Without such wording, presidential claims of authority fall short.
Supreme Court May Decide Tariffs Dispute
The case is based on the lawsuits of small business and US states against the sweeping tariffs proposed by Trump in 2024. His executive orders had provided a level of 10% duty on virtually all countries and reciprocal tariffs on dozens more.
Tariffs on China, Canada and Mexico were invalidated, whereas tariffs on steel and aluminium were left undisturbed by another authority. The government maintained that the cancellation of tariffs would lead to a collapse of finances which was similar to the stock market crash in 1929.
The dispute has shifted to the Supreme Court, which in recent years has curtailed the power of the presidents to act without explicit Congressional approval. Having six conservative justices, three of whom were nominated by Trump, the ultimate decision may reshape the extent of presidential authority in regard to tariffs.
