Washington, USA, August 30, 2025
A US federal appeals court has delivered a significant blow to the administration’s economic policy, ruling that most of the global tariffs imposed under presidential emergency powers are illegal. The decision, which found that the president overstepped his authority, was met with a sharp reaction from the White House, which labeled the ruling a “total disaster.”
Headlines
* Legal Authority Exceeded: The court’s 7-4 ruling found that the president had exceeded the authority granted by a 1977 law, which does not explicitly grant the power to impose broad tariffs.
* Tariffs Remain for Now: The court’s decision will not take immediate effect, with a temporary stay in place until mid-October to allow the administration time to appeal the ruling to the Supreme Court.
* White House Retaliates: In a series of social media posts, the president accused the court of being “highly partisan” and vowed to take the case to the Supreme Court to ensure the tariffs remain in place.
* Economic Implications: The decision, if upheld, could have a profound impact on the American economy, potentially forcing the government to refund billions of dollars in collected tariffs and shifting global trade dynamics.
The US Court of Appeals for the Federal Circuit largely upheld a lower court’s finding that the International Emergency Economic Powers Act (IEEPA), the law used to justify the tariffs, does not grant the president unlimited authority to impose import taxes. The ruling states that the power to tax or impose tariffs is a core congressional authority, and the IEEPA, while giving the president significant power, does not extend to the wide-ranging and “unbounded” tariffs that have been a cornerstone of the administration’s trade policy.
While the ruling is a major legal setback, its immediate impact is limited. The tariffs will remain in effect for now, giving the administration a window to appeal to the highest court in the land. The Justice Department has indicated that it will appeal, setting the stage for a high-stakes legal battle that could ultimately decide the future of US trade policy.
In a series of public statements, the administration defended the tariffs as a vital tool to protect American workers and industries. “If these Tariffs ever went away, it would be a total disaster for the Country,” one social media post read. The administration also stated that it is prepared with a “Plan B” to keep the tariffs in place, though it did not specify what that plan would entail.
The ruling has been welcomed by a coalition of businesses and states that filed the lawsuit, arguing that the tariffs have raised prices for consumers and created uncertainty for businesses. The legal challenge, which has been in the courts for months, has highlighted the long-standing debate over the balance of power between the executive branch and Congress on matters of trade.
