A US appeals court has ruled that most of the tariffs imposed by former President Donald Trump were illegal, setting the stage for a possible Supreme Court battle that could reshape US trade policy.
The ruling targets Trump’s “reciprocal” tariffs levied on dozens of countries, along with additional duties on China, Mexico and Canada.
In a 7-4 decision, the US Court of Appeals for the Federal Circuit declared the tariffs “invalid as contrary to law,” rejecting Trump’s claim that they were justified under the International Emergency Economic Powers Act (IEEPA).
The court said the IEEPA “neither mentions tariffs (or any of its synonyms) nor has procedural safeguards that contain clear limits on the President’s power to impose tariffs,” adding that Congress retains the constitutional authority to impose tariffs.
Trump condemned the ruling on his social media platform Truth Social, warning it would “literally destroy the United States of America” if upheld. He argued that removing tariffs would weaken the US economy and national security.
The decision comes after lawsuits filed by small businesses and a coalition of states, challenging Trump’s sweeping tariff orders.
Although the ruling also strikes down tariffs on Canada, Mexico and China, it does not apply to steel and aluminium tariffs imposed under a different legal authority.
The case is now expected to head to the Supreme Court, which in recent years has restricted presidential powers in cases where congressional approval was absent.
