Appeals Court Strikes Down Sweeping Trump Tariffs, Setting Up Battle At Supreme Court
A federal appeals court delivered a major blow to President Donald Trump’s trade agenda on Friday, ruling 7-4 that his administration overstepped its authority in levying sweeping tariffs under emergency powers. The decision sets the stage for a high-stakes battle at the U.S. Supreme Court, with billions of dollars—and a key pillar of Trump’s economic policy—hanging in the balance.
The U.S. Court of Appeals for the Federal Circuit declared that the Trump White House misused the International Emergency Economic Powers Act (IEEPA) when imposing what became known as the Trafficking and Reciprocal Tariffs, many of which were rolled out as part of Trump’s sweeping “Liberation Day” announcement earlier this year.
While the court struck down most of the tariffs, it paused enforcement of its ruling until October 14, allowing time for the administration to appeal.
Court: Tariff Power Belongs to Congress
In its 100+ page opinion, the court delivered a blunt reminder about constitutional boundaries: the power to tax, including tariffs, belongs to Congress—not the president.
“Absent a valid delegation by Congress, the President has no authority to impose taxes,” the majority wrote. “The invocation of IEEPA to impose tariffs on nearly every country in the world is undoubtedly a significant departure… This is not a minor extension of previous practice—it’s a leap.”
The court noted that no prior administration had invoked IEEPA—designed to address national security threats—to justify unilateral tariff hikes on imports.
Critics of the ruling say it leaves future presidents handcuffed, even in moments of economic warfare or global crisis. But defenders argue that it restores proper checks and balances.
Trump: ‘This Would Literally Destroy America’
President Trump wasted no time responding. In a fiery Truth Social post, he slammed the court as a “Highly Partisan Appeals Court” and warned that overturning his tariffs would lead to economic ruin.
“If allowed to stand, this Decision would literally destroy the United States of America,” Trump wrote. “We will no longer be held hostage by globalist trade deals, lopsided deficits, and foreign tariffs that punish our workers and our farmers.”
The administration confirmed it will immediately appeal to the Supreme Court, with White House counsel calling the decision “deeply flawed and dangerous.”
Trump’s tariffs—especially those targeting China, Mexico, and Canada—have been central to his second-term trade doctrine, used both as leverage in negotiations and as a punishment tool against nations he says are flooding the U.S. with cheap goods, drugs, and crime.
Billions In Refunds On The Line
According to trade analysts, the ruling opens the door to billions of dollars in potential refunds for importers who paid duties under the now-invalidated tariffs.
It also throws into legal limbo the sweeping tariffs announced under Trump’s “Liberation Day” economic decree, which targeted dozens of countries for failing to meet new standards on immigration enforcement, fentanyl interdiction, and reciprocal market access.
A federal trade court had already flagged the same constitutional concerns in May, setting the stage for Friday’s broader appellate ruling.
What’s Next: The Supreme Court and Beyond
The Trump administration now faces a tight window to persuade the Supreme Court to intervene and uphold the tariffs. If the high court declines to take the case—or upholds the appeals court’s ruling—Trump’s tariff regime could unravel by mid-October.
In the meantime, legal experts say lower courts may issue stays or injunctions to prevent the administration from enforcing new tariff rounds while the issue remains unsettled.
Despite the legal uncertainty, President Trump made clear he’s not backing down.
“The American people elected me to protect American workers, and that’s what I’ve done,” Trump said. “No judge, no bureaucrat, no globalist will stop me from putting America First.”