Washington D.C. – In a major blow to the Trump administration, a U.S. Federal Appeals Court on Friday (August 29, 2025) ruled that former President Donald Trump’s global tariffs were imposed illegally. The court stated that Trump had no legal authority to impose sweeping tariffs on multiple countries under emergency powers.
The verdict marks a significant legal setback for Trump, though the tariffs will temporarily remain in place to allow the administration to file an appeal before the U.S. Supreme Court.
Court Rules Trump Exceeded Powers
The Appeals Court for the Federal Circuit confirmed an earlier decision by a special Federal Trade Court in New York. In its judgment, delivered by a 7-4 majority, the court said:
“It is not possible to grant unlimited powers to the President under the guise of emergency law to impose tariffs on any country arbitrarily.”
The judges concluded that Trump had exceeded his authority under the 1977 International Emergency Economic Powers Act (IEEPA), which he had cited while announcing the tariffs.
Which Countries Were Affected?
The ruling applies to tariffs Trump imposed in April 2025, covering nearly all major U.S. trade partners, including:
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China
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Mexico
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Canada
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And several others
Trump had declared the tariffs on April 2, Independence Day celebrations, calling them “reciprocal tariffs” to counter America’s long-standing trade deficits.
Trump Administration’s Defense
Government lawyers argued in court that canceling the tariffs could force the U.S. to refund billions of dollars collected from import taxes. They warned this could trigger a severe economic shock to the U.S. Treasury and weaken Trump’s trade strategy.
Despite this argument, the appeals court emphasized that economic concerns cannot justify unconstitutional powers.
What’s Next?
The Trump administration has signaled its intent to take the case to the Supreme Court. Until then, the tariffs remain active — but businesses, trade partners, and investors are watching closely, as a cancellation could mean billions in repayments and a major shift in U.S. trade policy.
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