Major Blow to Trump’s Trade Policy: Federal Court Declares Most Tariffs Illegal
In a surprising 7-4 decision on August 29, 2025, the U.S. Court of Appeals for the Federal Circuit declared that the majority of President Trump’s global tariffs are illegal. This ruling marks a significant setback to his aggressive trade policy. The court concluded that Trump overstepped his presidential authority by invoking the International Emergency Economic Powers Act (IEEPA) to impose extensive tariffs on over 60 countries.
The ruling impacts Trump’s “reciprocal” tariffs, which range from 15% on European Union goods to 50% on imports from India and Brazil. Additionally, tariffs on China, Mexico, and Canada, imposed under fentanyl trafficking concerns, are also affected. However, the court permitted the tariffs to remain in effect until October 14, providing the Trump administration with an opportunity to appeal to the Supreme Court.
The court stated, “The core Congressional power to impose taxes such as tariffs is vested exclusively in the legislative branch by the Constitution.” Prior to this ruling, Trump’s tariffs impacted approximately 69% of U.S. goods imports. If ultimately struck down, this percentage would plummet to a mere 16%.
Trump responded defiantly on Truth Social, labeling the court as “Highly Partisan” and cautioning that the removal of the tariffs “would literally destroy the United States of America.” This decision introduces significant uncertainty into global trade markets and Trump’s economic strategy.
Source: CNBC