The U.S. Court of Appeals for the Federal Circuit has issued a landmark ruling declaring that most tariffs imposed under former President Donald Trump were illegal. While the decision affirms a prior lower court ruling, the immediate impact on trade remains uncertain, as enforcement has been temporarily delayed.
Key Developments
- Court Ruling
- The Federal Circuit ruled that Trump exceeded his authority in imposing broad tariffs, deeming them unlawful.
- Tariffs Still Active
- Despite the ruling, Trump confirmed that all tariffs remain in place until at least mid-October 2025, when the delay period ends. This pause gives time for a possible Supreme Court appeal.
- Presidential Authority Questioned
- The court found that Trump could not invoke the International Emergency Economic Powers Act (IEEPA) to impose import taxes without congressional approval.
- Impact on Trade Strategy
- The ruling casts doubt on Trump’s trade strategy, which heavily relied on tariffs both as a source of government revenue and as a negotiation tool in trade deals.
- Trump’s Warning
- Trump argued that removing his tariff powers would have “grave consequences,” warning of economic risks comparable to the Great Depression.
- Legal Criticism
- Conservative and libertarian legal experts alike have criticized the way Trump’s tariffs were structured, calling them improperly executed.
- National Security Tariffs Unaffected
- Importantly, tariffs on vehicles, steel, and other goods justified under national security provisions remain intact.
Key Data Overview
| Aspect | Details |
|---|---|
| Court Involved | U.S. Court of Appeals for the Federal Circuit |
| Decision | Most of Trump’s tariffs ruled illegal |
| Tariffs Status | Still in effect until mid-October 2025 (pending appeal) |
| Legal Basis Challenged | Use of International Emergency Economic Powers Act (IEEPA) |
| Authority Questioned | Presidential ability to impose import taxes without congressional approval |
| Trump’s Position | Losing tariff powers = “grave consequences,” likened to Great Depression |
| Expert Opinions | Conservative and libertarian experts: tariffs improperly executed |
| Unchanged Tariffs | National security tariffs on vehicles, steel, and other goods |
Implications
This ruling marks a critical moment in U.S. trade policy, potentially limiting the president’s ability to unilaterally impose tariffs in the future. If upheld by the Supreme Court, it could reshape how the U.S. balances congressional oversight with executive trade authority.
Glottis Limited 
Leave a comment