Court Ruling Deals Blow to Trump’s Tariff Power
A major legal decision has shaken up one of Donald Trump’s signature economic policies—his tariffs. On August 29th, a federal appeals court ruled that many of Trump’s sweeping tariffs had been imposed unlawfully, saying he leaned too heavily on emergency powers that were never meant to authorize this kind of trade action. The judges essentially concluded that tariffs, which are taxes on imports, fall under the power of Congress—not the president acting alone.
The case centered on Trump’s use of the International Emergency Economic Powers Act, or IEEPA, a law designed to let presidents act quickly in true national emergencies. But the court said this law does not cover tariffs of the kind Trump rolled out. By a 7–4 decision, the majority held that the president had exceeded his authority and that if tariffs of this magnitude were to be imposed, Congress would have to explicitly authorize them. That’s a sharp rebuke to Trump’s broader claim that he can use executive authority to reshape trade policy at will.
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For now, though, the tariffs remain in place. The court delayed the actual enforcement of its ruling until October, giving Trump’s legal team time to take the case to the Supreme Court. Trump, unsurprisingly, wasted no time firing back on social media, declaring that “all tariffs are still in effect” and warning that removing them would be a “total disaster for our country.” His administration has made tariffs a central piece of its economic agenda, using them not only against rivals like China but also in negotiations with allies such as the European Union, the UK, and Japan.
Officials inside the administration are treating the ruling as a serious problem. Treasury Secretary Scott Bessent warned that suspending tariffs could cause diplomatic embarrassment and disrupt ongoing negotiations with trading partners. Commerce Secretary Howard Lutnick went further, saying that the ruling could unwind trade deals already announced. Their concern is that foreign leaders may now hesitate to finalize trade agreements if Trump’s tariffs don’t have firm legal standing.
On the other side, those who challenged the tariffs are calling the ruling a victory for the Constitution. Neal Katyal, an attorney for the plaintiffs, said the court affirmed that only Congress has the power to impose taxes, including tariffs. He argued that letting the president act unilaterally would be a dangerous concentration of power. According to him, the founders were clear that such decisions must be made by lawmakers, not by “the stroke of a pen.”
Still, the White House insists the president acted lawfully and is already preparing for the next round. Attorney General Pam Bondi confirmed that the administration will appeal. That sets the stage for a potential Supreme Court battle, one that could redefine the limits of presidential authority over trade policy.
In short, this is more than a legal setback—it’s a test of the balance of power between the executive branch and Congress, with enormous consequences for America’s economy and its role in global trade. The final word has not yet been spoken, but the fight over Trump’s tariffs is now entering its most decisive phase.
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