A US appeals court has ruled that most of former President Donald Trump’s tariffs are illegal, setting the stage for a potential Supreme Court battle that could reshape his foreign policy agenda.
The 7–4 ruling affects Trump’s “reciprocal” tariffs imposed on dozens of countries, as well as tariffs on China, Mexico, and Canada.
The court rejected Trump’s reliance on the International Emergency Economic Powers Act (IEEPA), saying tariffs are a Congressional power and declaring the levies “invalid as contrary to law.”
The decision will take effect on October 14 unless the Supreme Court agrees to hear the case.
Trump blasted the ruling on Truth Social, calling it “highly partisan” and warning that removing the tariffs would “destroy the United States.”
The court noted that Congress never intended to give presidents unlimited authority to impose tariffs under the IEEPA.
The ruling follows lawsuits by small businesses and US states, challenging Trump’s executive orders that imposed a 10% baseline tariff on almost every country.
While the ruling strikes down tariffs on Canada, Mexico, and China, it does not affect steel and aluminium tariffs imposed under different presidential authority.
Lawyers for the White House warned that removing Trump’s tariff powers could trigger a financial crisis similar to the Great Depression.
The case is now expected to go before the US Supreme Court, which will decide whether Trump’s sweeping tariff programme was lawful or an overreach of presidential authority.
