"Tariffs are illegal" says U.S. appeals court

Here’s a compelling article breaking down the recent U.S. appeals court ruling that most of President Trump’s global tariffs were deemed illegal—read it for a quick and engaging overview.

What’s Going On?

1. Ruling Overview
A U.S. federal appeals court has ruled in a 7–4 decision that most of Trump’s sweeping tariffs—especially those imposed under emergency powers via the International Emergency Economic Powers Act (IEEPA)—were illegal. The court found no explicit authorization in the law for tariffs, emphasizing that Congress, not the president, holds that power.

2. Which Tariffs Are in Question?
The ruling targets broad “Liberation Day” tariffs and “reciprocal” or “trafficking” tariffs aimed at countries like India, China, Canada, and Mexico. Sector-specific tariffs (e.g., on steel and aluminum) imposed under different statutes remain unaffected.

3. Rationale Behind the Decision
The court held that IEEPA does not explicitly authorize tariffs, describing Trump’s use of it as overreach. The ruling cited constitutional limits and the major questions doctrine, which requires clear legislative authorization for economically significant actions.

4. Timelines & Legal Next Steps
Although ruled illegal, the tariffs remain in effect until October 14, 2025, as the administration plans to appeal to the Supreme Court.

5. Trump’s Reaction
Trump called the verdict a “total disaster for the country” and labeled the court’s decision “highly partisan,” promising to challenge it up to the Supreme Court.

6. Legal Background: V.O.S. Selections Case
This ruling builds on a May 2025 judgment from the U.S. Court of International Trade in V.O.S. Selections, Inc. v. U.S., which barred enforcement of these tariffs, stating IEEPA doesn’t authorize them.

Why It Matters

• Legal Precedent: This ruling reasserts Congressional authority over tariffs and strengthens checks on executive power.
• Economic Uncertainty: Markets and businesses face unpredictability until the legal process concludes.
• Policy Implications: If upheld, the decision could reshape how future presidents handle trade and what limits apply to emergency powers.
• Political Stakes: Appeals are likely, fueling debate on executive authority and setting the stage for a Supreme Court showdown.