WASHINGTON (Diya TV) — In a major legal rebuke to one of President Donald Trump’s signature economic policies, the U.S. Court of Appeals for the Federal Circuit ruled that a sweeping array of tariffs imposed by the Trump administration are illegal. The 7–4 decision, handed down Friday, targets tariffs enacted under emergency powers, including those levied against China, Mexico, and Canada, but enforcement is being delayed until mid-October in anticipation of a Supreme Court appeal.
The ruling challenges Trump’s invocation of the International Emergency Economic Powers Act (IEEPA)—a 1970s-era law that grants the president broad authority during times of national emergency. The court found that while the law gives the president significant latitude, it does not allow the imposition of tariffs.
“The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency,” the court stated. “But none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax.”
The tariffs at issue include the controversial “reciprocal” tariffs Trump announced in April, alongside additional duties on Chinese imports and penalties targeting North American trade partners. Notably, the court’s decision does not affect tariffs implemented under different statutes—such as those on imported steel and aluminum.
President Trump, who has built much of his second-term economic policy on tariff-driven protectionism, responded swiftly on social media, warning that the ruling would “literally destroy the United States of America” if allowed to stand.
White House officials have already signaled plans to escalate the case to the U.S. Supreme Court, where they hope the conservative majority will uphold the president’s trade strategy.
Trump’s tariffs—which have reached as high as 50% on Indian goods and 15% on European imports—have become a cornerstone of the administration’s “America First” agenda. The president has defended the duties as necessary to combat unfair trade practices and rebalance global commerce.
But many economists and business leaders have expressed alarm. Studies have shown that American consumers and small businesses are bearing the brunt of rising import costs, with ripple effects on inflation and supply chains. Multiple states and industry groups have filed legal challenges, arguing the tariffs exceed the president’s constitutional authority.
This isn’t the first legal blow to Trump’s tariff efforts. In May, the U.S. Court of International Trade also found that the president had overstepped his statutory powers. Friday’s appellate ruling further cements that position and now sets the stage for a Supreme Court showdown.
If the high court agrees to take up the case—and sides with the lower courts—it could dismantle the legal foundation for some of Trump’s most aggressive trade policies. The outcome may shape not just U.S. economic policy, but also future executive authority over foreign affairs and commerce.
Until then, Trump’s tariffs remain in place—at least for now. But the political and legal storm is only beginning to brew.
