A major setback has hit former President Donald Trump’s trade policy, as a federal appeals court ruled that most of his global tariffs were illegal. The decision challenges one of the key pillars of Trump’s economic agenda, according to a report by Reuters.
The ruling came from the US Court of Appeals for the Federal Circuit, which concluded that the law Trump relied on—the International Emergency Economic Powers Act (IEEPA)—does not grant the President the authority to impose such tariffs.
Decision Paused Until October 14
Although the court has ruled against Trump’s tariffs, the decision is not final yet. The judges paused the ruling until October 14, giving Trump and his legal team time to appeal to the US Supreme Court.
Trump is expected to take the fight to the nation’s highest court in an effort to uphold his trade policy.
Why Trump Imposed Global Tariffs
The Trump administration had previously argued that the IEEPA allowed the President to impose tariffs on foreign countries in response to national emergencies. Using this interpretation, Trump introduced “reciprocal” tariffs in April, claiming they were necessary to counter unfair trade practices and protect American jobs.
What Trump Said About the Ruling
BREAKING: President Trump releases a statement that “all tariffs are still in effect” and that the US Court of Appeals “incorrectly said that our tariffs should be removed.” pic.twitter.com/Qz8Abd48GG
— The Kobeissi Letter (@KobeissiLetter) August 29, 2025
Despite the court ruling, Trump vowed that tariffs on imports will remain in place. In a Truth Social post, he called the decision “highly partisan” and warned of severe consequences if tariffs were removed.
“ALL TARIFFS ARE STILL IN EFFECT!” Trump wrote, adding that eliminating them would be a “total disaster” for American farmers, manufacturers, and workers.
He further claimed that striking down the tariffs could “literally destroy the United States of America”, arguing that tariffs are essential for protecting the economy from trade deficits and barriers imposed by other countries.
Lower Court Also Rejected Trump’s Tariffs
Earlier this year, in May, a lower federal trade court had already ruled that IEEPA cannot be used to implement broad, global tariffs. That court also struck down Trump’s “reciprocal” tariff plan, but the appeals court put that decision on hold while Trump pursued his appeal.
Key Takeaway
As of now, Trump’s tariffs remain in effect, but the case could set a major precedent when it reaches the Supreme Court. The ruling has significant implications for US trade policy, global markets, and Trump’s political strategy moving forward.
