A federal appeals court has sided with a lower court which found that Trump did not have the authority to issue his tariffs.
A federal appeals court ruled on Friday that many of President Trump’s most punishing tariffs are illegal, delivering a major new setback to the administration that may severely undercut its primary source of leverage in an expanding global trade war.
The ruling, from the U.S. Court of Appeals for the Federal Circuit, affirmed a lower court’s finding that Mr. Trump does not possess unlimited power under the law to impose taxes on nearly all U.S. imports. But the appellate judges delayed the implementation of their order until October to grant the administration time to seek review by the Supreme Court, which would allow Mr. Trump to keep his contested duties in place for now.
At the heart of the fight is the extent to which Mr. Trump may invoke a decades-old economic emergency law to issue withering tariffs on the nation’s foremost trading partners. The law does not mention tariffs, but the president has seized on the statute to apply vast new duties anyway, aiming to remake U.S. trade relationships and raise billions of dollars in revenue.
The tariffs in questions are those put forth under the the International Emergency Economic Powers Act. A couple of companies sued the administration over his use of emergency powers under that act to put the tariffs forward.
V.O.S. Selections Inc., a wine and spirits importer, and Plastic Services and Products, a pipe and fittings company, sued Trump over his use of the International Emergency Economic Powers Act (IEEPA) of 1977, saying he has “no authority to issue across-the-board worldwide tariffs without congressional approval.”
The Court of International Trade initially blocked the tariffs in late May. It found that the import duties lacked “any identifiable limits” and that the law Trump cited in many of his executive orders did not “delegate an unbounded tariff authority to the President.” It also said the tariffs did not meet the test of an “unusual and extraordinary” risk to the country.
All of Trump’s tariffs on major trading partners, such as Canada, Mexico, China, the European Union, Japan, India, Brazil and a handful of other countries, have been deployed using the law.
President Trump responded to the court’s decision on Truth Social.
— Rapid Response 47 (@RapidResponse47) August 29, 2025
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. 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. 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.
This decision does not take immediate effect. The tariffs will remain in place while the case continues. However, the Trump administration is likely to appeal this to the Supreme Court. He obviously had an advantage there because of the court’s 6-3 makeup, but even if he loses at SCOTUS he still has other options.
Even though use of the IEEPA law has been blocked, the administration has a number of other ways to impose import taxes if the Supreme Court also blocks its use.
For example, Trump could instruct the commerce secretary and the U.S. trade representative to launch investigations under Section 301 of the 1974 U.S. Trade Act against various trading partners, which would allow tariffs to be implemented after an investigation runs its course. He could also use Section 232 of the 1962 trade law, which he is already using for steel and aluminum duties.
There is also a never-before-used trade law, Section 338 of the Trade Act of 1930, which allows the president to impose tariffs of up to 50% on imports from countries.
So the tariffs likely aren’t going away which means Trump still has leverage to make trade deals with various countries.
Editor’s Note: Radical leftist judges are doing everything they can to hamstring President Trump’s agenda to make America great again.
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