Agencies / Washington
A U.S. federal appeals court has ruled that a significant number of tariffs imposed during President Donald Trump’s administration were issued illegally, reinforcing an earlier lower court decision that challenged the legal basis of the duties.
The court found that the administration misused the International Emergency Economic Powers Act (IEEPA), a law designed to address national security crises, as justification for wide-ranging tariffs. Legal experts and trade analysts argued that the IEEPA was never intended to authorize sweeping trade wars, particularly against longstanding economic partners.
Trump’s aggressive tariff regime, introduced between 2018 and 2020, primarily targeted China but also extended to allies such as the European Union, Canada, and Mexico. The measures sparked retaliatory tariffs, disrupted supply chains, and raised costs for American farmers, manufacturers, and consumers. Critics said the unilateral approach strained diplomatic ties and undermined the multilateral framework of global trade.
The appeals court decision is being hailed as a victory for businesses, trade associations, and lawmakers who had long opposed the tariffs. Several industry groups had sued the government, arguing that the duties were imposed without proper congressional oversight and exceeded presidential authority.
While the ruling does not automatically remove existing tariffs—many of which were later adjusted or continued under the Biden administration—it sets an important precedent for limiting executive power in trade policy. The decision may open the door to compensation claims from affected businesses and could shape future debates over the balance of power between Congress and the White House.
Legal analysts expect the case to reach the U.S. Supreme Court if the government pursues an appeal, given its far-reaching implications for both presidential authority and the U.S. role in global trade governance.
Trump justified tariffs
Claiming extraordinary power to act without congressional approval, Trump justified the taxes under the 1977 International Emergency Economic Powers Act by declaring the United States’ longstanding trade deficits “a national emergency”.