Appeals Court Rejects Trump's Global Tariffs, Trump to Appeal to Supreme Court.

A US appeals court has ruled 7-4 against Trump's global tariffs, finding that the president overstepped his authority under the International Emergency Economic Powers Act. The decision voids baseline tariffs of 10% on almost all countries, as well as steeper tariffs on bad actor countries and levies on Canada, China, and Mexico. Trump has vowed to appeal to the Supreme Court, and the decision won't cancel all of his second-term tariffs.

A US appeals court has ruled 7-4 against President Donald Trump's global tariffs, finding that the president overstepped his authority under the International Emergency Economic Powers Act (IEEPA). The decision voids baseline tariffs of 10% on almost all countries, as well as steeper tariffs on bad actor countries and levies on Canada, China, and Mexico. Trump has vowed to appeal to the Supreme Court, and the decision won't cancel all of his second-term tariffs.

The ruling, delivered by the Federal Circuit, concluded that Trump's use of the IEEPA to impose tariffs was unlawful. The court noted that Congress did not grant the president authority to impose tariffs of the magnitude and nature of the ones at issue in the case [1]. The court sent the challenges back to the lower court to reconsider the nationwide scope of the tariff blocks.

Trump responded to the ruling on social media, stating that all tariffs remain in effect and that he expects the US to ultimately win the case [2]. Treasury Secretary Scott Bessent warned that suspending the tariffs could lead to diplomatic embarrassment and disrupt ongoing trade negotiations [1]. Commerce Secretary Howard Lutnick echoed these concerns, stating that a ruling against the tariffs could unravel existing trade deals [1].

The court's decision underscores the limits of presidential authority under the IEEPA and the need for explicit congressional authorization to impose tariffs. The case highlights the ongoing legal battle over Trump's economic policies and the potential impact on US trade relations.

References:
[1] https://www.cnn.com/2025/08/29/business/trump-tariffs-appeals-court-ruling
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_FWN3UL12A:0-trump-says-tariffs-still-in-effect-after-us-appeals-court-ruling/