Appeals Court Rules Trump Exceeded Authority with Emergency Tariffs
On August 29, 2025, the U.S. Court of Appeals for the Federal Circuit issued a 7-4 decision declaring most of President Trump’s emergency tariffs unlawful under the International Emergency Economic Powers Act (IEEPA). The court noted that the statute does not explicitly authorize tariffs or taxation powers. The Economic TimesReuters
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Tariffs Stay in Place Until October Amid Legal Battle
Despite the ruling, tariffs remain in effect until October 14, giving the administration time to appeal to the U.S. Supreme Court. The Daily BeastNew York Post
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Trump Calls Ruling a “Total Disaster for the Country”
Responding sharply via Truth Social, President Trump labelled the verdict a “total disaster for the Country,” and vowed that removing the tariffs would weaken the United States. He criticised the court as “highly partisan” and reaffirmed his intent to pursue a Supreme Court appeal. The Economic TimesThe Daily Beast
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Legal Precedent Questioned Under IEEPA Powers
The appeals court echoed earlier rulings from the U.S. Court of International Trade, which found that IEEPA does not grant the president unlimited tariff-making authority. In the case V.O.S. Selections, Inc. v. United States, the court permanently blocked enforcement of major tariff orders, although enforcement was temporarily stayed pending appeal. Wikipedia+1New York Post
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Political and Economic Fallout Expected
The ruling strikes a blow to Trump’s expansive trade policy framework. Analysts warn of legal and financial fallout, including possible refund demands for previously collected tariff revenue. The decision also raises broader questions about the limits of executive authority in trade. New York PostNews.com.auWikipedia
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Administration Stands Firm on Tariffs’ Necessity
White House officials maintain that tariffs are vital for national security and protecting American industry from unfair trade practices. They argue that the tariffs counter longstanding trade imbalances and safeguard jobs. The Daily BeastThe Economic Times
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Broader Implications for Executive Power
The dispute reaches beyond economic policy to constitutional law. Courts have increasingly scrutinised whether old statutes justify sweeping executive action. The appeals court judgment underscores the need for clearer congressional authorization for tariff impositions under emergency powers. ReutersWikipedia
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Supreme Court Now Central to Tariff Battle
With the October deadline looming, all eyes turn to the Supreme Court, where final rulings could redefine presidential economic authority and determine the future of Trump-era trade strategies. New York PostReuters
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Conclusion: Trump Prepared for Continued Legal Battle
The August 29 ruling marks a significant legal setback for the Trump administration’s tariff strategy. Yet, steel-laden bravado on Truth Social signals that Trump is poised to continue his legal fight. The unfolding saga may reshape U.S. trade policy and executive power limitations for years to come.
