WASHINGTON, Aug 30: A US federal appeals court has ruled that many of Donald Trump’s global tariffs were unlawful, in a decision that could significantly affect his trade policies, the BBC reported.
The ruling, delivered by the US Court of Appeals for the Federal Circuit in a 7–4 vote, declared that tariffs imposed under Trump’s use of the International Emergency Economic Powers Act (IEEPA) were “invalid as contrary to law”, the BBC said.
According to the BBC, the judges argued that the 1977 law does not mention tariffs, nor does it give the president unlimited authority to impose them. Instead, the court said, tariff powers rest with Congress.
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The case stemmed from two lawsuits brought by small businesses and US states after Trump’s executive orders in April imposed a 10 percent baseline tariff on almost every country and additional “reciprocal” tariffs on dozens more. The BBC noted that tariffs on Canada, Mexico, and China were also struck down in this ruling, though measures on steel and aluminium, introduced under different authority, remain in place.
Trump had defended his actions by declaring a national emergency on trade, claiming that trade imbalances posed a threat to US security. The BBC quoted him criticising the court on Truth Social, saying the decision “would literally destroy the United States of America” if upheld. He warned that ending the tariffs would make the country “financially weak”.
Lawyers for the White House argued that revoking the tariffs could trigger an economic crisis akin to the 1929 stock market crash, according to the BBC. They wrote that removing presidential tariff authority could have “catastrophic consequences” for national security, foreign policy, and the economy.
The BBC reported that Friday’s decision builds on an earlier ruling by the Court of International Trade, which also deemed the tariffs unlawful. That judgment was paused during the appeals process.
The appellate court said it was unlikely Congress ever intended to grant the president sweeping tariff powers under IEEPA, noting that when lawmakers want to delegate such authority, they do so explicitly.
The ruling will not take effect until mid-October, giving the administration time to appeal. The BBC said the case is expected to go to the US Supreme Court, which has often been sceptical of presidents using existing laws to enact wide-ranging policies.
According to the BBC, if the case reaches the Supreme Court, the justices will need to decide whether Trump’s tariff programme was a case of presidential overreach or a legitimate exercise of executive authority.
