In a recent development, a divided US federal appeals court on Friday stated that most taxes imposed by Trump and his government as illegal and nullified any sort of action regarding these tariffs.
The U.S. Court of Appeals for the Federal Circuit stated that Trump overstepped his authority when he used the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs on imports from dozens of countries, as well as specific levies on China, Mexico, and Canada.
“U.S. Const. art. I, § 8, cl. 1, we do not read IEEPA to delegate an unbounded tariff authority to the President.” Says the U.S. federal court.
The court ruled that IEEPA, in 1977, passed an order that let presidents respond to “unusual and extraordinary” as national emergencies, but this does not give presidents the power to impose tariffs. Under this provision, Trump does not get the power to impose tax tariffs on other countries without a reason that could make the legal system inclined towards his autocratic move. This leads to him not getting a green light for this ‘national emergency’
Since the start of his tenure on January 20, 2025, President Donald Trump has increased tariffs on imports to the U.S.. In July 2025, the administration increased the reciprocal tariffs on Indonesia (19%), South Korea (15%), Vietnam (20%), the Philippines (19%) and Japan (15%). In the span of April to August, the administration has reached to make framework agreements for the United Kingdom and the European Union. His negotiations are still ongoing with nations like Mexico and China. In the case of India (25% reciprocal tariff), the administration has opted for an extreme percentage of tariffs, which created unease in the relations between India and the USA.
However, the tariffs will remain in place until October 14, 2025, giving the Trump administration time to appeal to the U.S. Supreme Court. Given the importance of the case, most people and nations expect justice to prevail. This shows Trump’s trade policy being heavily built around tariffs, and his boat of unfair tariffs could now sink any time.
Trump showed his views on the X handle Truth Social, calling the court “highly partisan” and warning that striking down the tariffs would “literally destroy the United States of America.” He insisted that tariffs have strengthened the economy and predicted that the Supreme Court would ultimately side with him. This case of ‘national emergency’ is not in favour of the Trump administration, and Trump doesn’t seem to digest this fact.
While supporters stated that the tariffs gave Washington leverage in trade negotiations,
critics argued that they made imports more expensive, hurt small businesses, and rattled financial markets.
Trump’s administration has argued that the law allows tariffs under provisions of ‘national emergency’ that authorise a president to “regulate” imports or block them completely. Trump declared a national emergency in April over the fact that the U.S. imports more than it exports, as the nation has done for decades. Trump stated that the persistent trade deficit was undermining U.S. manufacturing capability and military readiness, thus leading to a national emergency.
Even though Trump’s tariffs remain in place, their future looks uncertain. But in a different case, if the justices side with Trump, it would show tariffs as a powerful presidential tool and give the ruling party the benefit of the doubt.
Either way, the outcome is set to be one of the most important constitutional and economic decisions, determining how much authority presidents truly have to reshape the global economy on their own.
