US Appeals Court Holds Most Trump Tariffs Illegal. What Happens Next?

(MENAFN- Live Mint) Most of US President Donald Trump's tariffs are illegal, a divided US appeals court ruled on Friday. The court allowed the tariffs to remain in place through October 14 to give the Trump administration a chance to file an appeal with the US Supreme Court.

The 7-4 decision from the US Court of Appeals for the Federal Circuit in Washington, DC, addressed the legality of what Trump calls "reciprocal" tariffs imposed as part of his trade war in April, as well as a separate set of tariffs imposed in February against China, Canada and Mexico.

The decision comes as a legal fight over the independence of the Federal Reserve also seems bound for the Supreme Court, setting up an unprecedented legal showdown this year over Trump's entire economic policy.

Trump's 'unlimited authority': What did the court say

The US court reacted to Trump's justification of both sets of tariffs-as well as more recent levies-under the International Emergency Economic Powers Act (IEEPA).

IEEPA gives the president the power to address "unusual and extraordinary" threats during national emergencies.

"The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax," the court said.

"It seems unlikely that Congress intended, in enacting IEEPA, to depart from its past practice and grant the President unlimited authority to impose tariffs."

MENAFN29082025007365015876ID1109995283