In a landmark ruling with far-reaching trade implications, the <a title="US" href="https://www.benefitnews24.com/international/trump-s-tariff-bomb-hits-indian-exports/18430" target="_blank" rel="noopener">United States</a> Court of Appeals for the Federal Circuit has held that most of President&nbsp;Donald Trump&rsquo;s tariffs were illegal, saying he exceeded the powers granted under the International Emergency Economic Powers Act (IEEPA).
The 7&ndash;4 decision, delivered on Friday by a deeply divided bench, affirmed that while the IEEPA &ldquo;bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, none of these actions explicitly include the power to impose tariffs, duties, or the power to tax.&rdquo;
&nbsp;
ALSO READ: https://www.benefitnews24.com/opinion/trump-s-tariff-gambit-shifts-global-balances/17917
The ruling stems from two major challenges &mdash; one filed by five small American businesses and the other by 12 Democratic-led states &mdash; both contending that the IEEPA did not authorise such broad tariff powers. The Court agreed, declaring that Trump&rsquo;s so-called &ldquo;reciprocal tariffs&rdquo; and additional duties on China, Canada, and Mexico went beyond the scope of presidential authority.
<h3 data-start="1418" data-end="1461">Tariffs remain in place &ndash; for now</h3>
Despite the ruling, the court has allowed the tariff measures to remain in force until 14 October, providing the Trump administration with a window to appeal before the US Supreme Court. The decision covers Trump&rsquo;s 10% universal duty and other levies tied to alleged failures by trade partners to curb the flow of fentanyl and other drugs into the US.
However, tariffs on automobiles and steel imports, introduced under a different statute, remain unaffected.
<h3 data-start="1948" data-end="1982">Trump vows to fight back</h3>
Reacting swiftly, Trump criticised the court on social media: &ldquo;Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed.&rdquo; He signalled his intention to challenge the decision before the Supreme Court.
For Trump, tariffs were central to his trade war strategy, with rates ranging from 15% on goods from the European Union to 50% on imports from India. He consistently argued that such measures were vital to correcting what he described as an unfair global trading system that disadvantaged American businesses.
<h3 data-start="2547" data-end="2583">Legal and economic ripples</h3>
The ruling underscores a rare judicial check on the expansive use of presidential powers in trade and national emergency contexts. Legal scholars note that if upheld by the Supreme Court, the decision could reshape the balance between executive authority and congressional control over trade policy.
With the Supreme Court now expected to weigh in, the legality of Trump&rsquo;s tariffs &mdash; and potentially the future use of IEEPA in trade disputes &mdash; hangs in the balance.

US Appeals Court rules Trump tariffs illegal

US appeals court brands Trump tariffs illegal, citing overreach of presidential powers

Can Trump’s tariffs survive court scrutiny?

US appeals court brands Trump tariffs illegal, citing overreach of presidential powers

August 30, 2025 | 09:03 IST