A US federal appeals court has struck down most of the tariffs imposed by President Donald Trump, ruling they were illegal and beyond his presidential powers.

 

 

 

 

The decision, delivered in a 7-4 vote by the US Court of Appeals for the Federal Circuit, rejected Trump’s claim that the tariffs were justified under the International Emergency Economic Powers Act (IEEPA).

 

 

 

 

The judges ruled that the IEEPA does not grant the president authority to impose tariffs, describing the levies as “invalid as contrary to law.” They emphasised that setting tariffs remains a core power of Congress, noting that the 1977 law was not intended to give presidents unlimited authority over trade policy.

 

 

 

The ruling affects Trump’s “reciprocal” tariffs, which applied broadly to countries worldwide, as well as tariffs placed on China, Mexico and Canada. It does not affect levies introduced under other authorities, such as those on steel and aluminium.

 

 

 

 

 

The decision followed lawsuits from small businesses and US states, who challenged the tariffs after Trump’s 2024 executive orders imposed a baseline 10% tariff on nearly all countries and additional reciprocal tariffs. The New York-based Court of International Trade had previously ruled the tariffs unlawful, but that ruling was stayed pending appeal.

 

 

 

Trump criticised the ruling on his Truth Social platform, calling the court “highly partisan” and warning that removing the tariffs would “literally destroy the United States of America.” He argued the tariffs were essential for economic strength and national security.

 

 

 

Lawyers for the administration had warned that overturning the tariffs could trigger a financial collapse similar to the 1929 stock market crash, arguing the levies were critical to protecting US security and foreign policy interests.

 

 

 

The ruling, which takes effect on 14 October unless overturned, is expected to be appealed to the US Supreme Court. The case could become a major test of presidential powers, as the top court has increasingly struck down sweeping executive actions not explicitly authorised by Congress. With six of its nine justices appointed by Republicans, including three by Trump himself, the Supreme Court’s eventual stance could reshape the limits of presidential authority on trade.