Federal Court Rules Against Trump’s Tariffs

A federal appeals court has determined that President Donald Trump overstepped his legal authority by declaring a national emergency and imposing tariffs on imports. Back in May, a lower federal court blocked Trump’s emergency customs order, stating that the International Emergency Economic Powers Act (IEEPA) did not permit the extensive tariffs that were implemented in April. On August 29, the U.S. Court of Appeals upheld this ruling, which annulled five administrative orders that levied customs duties under the IEEPA.

The majority opinion from the judges indicated that the power to “regulate imports” under the IEEPA does not grant the president the ability to unilaterally levy tariffs on trade. This case revolves around two groups of tariffs that were introduced at the beginning of 2025.

The first set, termed the “trafficking tariffs,” followed Trump’s national emergency declaration regarding issues at the southern border. He mandated a 25% duty on nearly all imports from Mexico and Canada, as well as Chinese goods, citing concerns over opioids and criminal activities stemming from these countries. This duty was later adjusted to 20%.

The second set, referred to as “mutual tariffs,” was even broader. In April 2025, Trump imposed a minimum 10% duty on imports from nearly all U.S. trading partners, with additional charges reaching up to 50%, depending on the country. Notably, tariffs on China soared to 125% before being rolled back during negotiations.

Initially, these tariffs were meant to be permanent, adjustable solely by the President. However, they sparked legal challenges from various private firms and a coalition of 12 states. The plaintiffs argued that it is Congress, not the executive branch, that possesses the constitutional authority to impose tariffs, contending that Trump’s measures exceeded the powers granted to him under the IEEPA.