US federal appeals court questions the legality of Trump’s emergency tariffs. [Photo: AP Photo]
A US federal appeals court has delivered a major legal challenge to President Donald Trump’s global tariffs. The judges said many of the sweeping duties he imposed under emergency powers are illegal.
However, the court allowed the tariffs to remain in place for now. This decision gives Trump time to appeal to the Supreme Court. Additionally, it complicates international trade disputes legally and may have far-reaching effects on companies worldwide.
In a 7-4 decision, the appeals court said Trump went beyond his powers under the International Emergency Economic Powers Act (IEEPA). While presidents can take action in times of national emergency, the court said using these powers to impose broad tariffs is like creating new taxes. The judges ruled that this is outside the president’s legal authority.
Trump, however, is not backing down. Posting on Truth Social, he said, “the United States of America will win in the end,” and promised to continue fighting the case in the Supreme Court.
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The ruling affects several of America’s trading partners, including the European Union, Canada, Mexico, and China. All of these countries faced tariffs under Trump’s emergency orders, and billions of dollars have already been collected.
If the Supreme Court rules against Trump, US businesses could demand refunds for duties they already paid. This could create serious financial and diplomatic problems for Washington.
Some industry-specific tariffs, such as those on steel, aluminium, and automobiles, were not part of this case. Still, they have caused disputes internationally and may also face legal scrutiny in the future.
Trump’s cabinet officials have expressed worry about the ruling. Commerce Secretary Howard Lutnick said reversing the tariffs could damage the credibility of the United States, disrupt ongoing trade negotiations, and trigger retaliation from other countries.
Treasury Secretary Scott Bessent added that ending the duties could cause “dangerous diplomatic embarrassment.”
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The court, however, emphasized that Congress never gave the president unlimited power to impose global tariffs under emergency laws.
For Trump, tariffs were a key part of his strong trade strategy. Now, the Supreme Court will decide whether his approach was legal.
If the judges decide against him, US firms could be able to recoup billions of dollars in duties. If the court decides in his favour, future presidents might have a strong precedent ot impose emergency tariffs.
