A US federal appeals court has ruled that most tariffs imposed by former President Donald Trump were unlawful, finding that he exceeded his authority under the International Emergency Economic Powers Act (IEEPA).
The ruling, delivered on August 29, 2025, covers tariffs introduced in February and April against countries including China, Canada, and Mexico. Judges determined that the IEEPA does not empower a president to levy import taxes, as that constitutional authority belongs to Congress.
Although the tariffs remain in place pending further legal proceedings, the decision sets up a high-stakes battle likely headed for the Supreme Court.
The Trump administration swiftly appealed, arguing that the president acted within powers delegated by Congress to protect national and economic security. White House spokesman Kush Desai said Trump’s actions were lawful, while Trump himself condemned the ruling as “highly partisan” and warned of “total disaster” if the tariffs were removed.
The judgment carries major domestic and international implications, raising uncertainty over Trump’s trade policy as negotiations continue with the EU, China, and others. Countries such as India, grappling with cumulative 50% tariffs, are reassessing their economic strategies in response.
The decision does not affect steel and aluminum tariffs imposed under separate legislation. However, the court delayed enforcement until October 14, giving the Trump administration time to seek relief from the Supreme Court.
