US Appeals Court Blocks Most Trump Tariffs

This decision invalidates tariffs imposed on countries including Canada, Mexico, and China, as well as Trump’s “reciprocal” duties, all of which were based on emergency powers.

RMN News Legal Desk
August 30, 2025

WASHINGTON D.C. – August 30, 2025 – A US federal appeals court on Friday, August 30, 2025, delivered a significant blow to President Donald Trump’s trade policy by blocking the implementation of most of his tariff measures. The court ruled that President Trump overstepped his authority under the International Emergency Economic Powers Act (IEEPA). Following the verdict, the White House criticized the decision, with President Trump denouncing it as a “total disaster for the Country”.

The ruling by the US Court of Appeals for the Federal Circuit in Washington, D.C., consolidated multiple lawsuits and affirmed earlier decisions, stating that the IEEPA does not explicitly grant the President the power to impose tariffs, duties, or the like, or the power to tax. The court’s three-judge panel determined that granting such “unbounded authority” through any interpretation of IEEPA would violate constitutional principles, emphasizing that Congress holds the power to issue taxes and tariffs. The judges clarified that IEEPA permits presidential action to enforce essential economic sanctions during emergencies to address “exceptional and extraordinary threats,” not to impose unlimited tariffs.

This decision invalidates tariffs imposed on countries including Canada, Mexico, and China, as well as Trump’s “reciprocal” duties, all of which were based on emergency powers. These tariffs, intended to penalize countries with trade surpluses, had previously caused significant instability in global financial markets. President Trump had invoked IEEPA, a 1977 law historically used for sanctions and asset freezes, to justify these tariffs by declaring a “national emergency” over persistent US trade deficits and cross-border drug flows, such as illegal fentanyl. His administration argued that the law’s power to “regulate” imports extended to tariffs, a view the appeals court rejected.

The lawsuits were initiated by five small US businesses and a coalition of 12 Democratic-led states, who contended that the President had encroached upon Congress’s constitutional power of the purse. They argued that persistent US trade deficits over 49 years did not constitute an immediate emergency warranting such broad action under emergency powers. The New York-based US Court of International Trade had previously ruled against Trump’s tariff policies on May 28, stating the President had exceeded his powers.

President Trump sharply criticized the appeals court’s judgment, stating on his social media platform Truth Social that “If these Tariffs ever went away, it would be a total disaster for the Country” and that “If allowed to stand, this Decision would literally destroy the United States of America”. He attacked the appeals courts as “Highly Partisan” and asserted that the Supreme Court would ultimately rule in his favor. A senior White House adviser reportedly described the ruling as a “judicial coup” that was “out of control”.

The White House immediately filed an appeal against the verdict, contending that unelected judges should not interfere with such matters. The appeals court has put its ruling on hold until October 14, providing the Trump administration time to seek a reversal from the Supreme Court. The Justice Department is expected to appeal, with the case likely headed to the US Supreme Court. White House spokesman Kush Desai affirmed, “The President’s tariffs remain in effect, and we look forward to ultimate victory on this matter”.

It is important to note that other Trump-era tariffs remain valid, specifically those on foreign steel, aluminum, and automobiles. These particular levies were established through a different legal framework, requiring a Commerce Department investigation rather than presidential discretion under IEEPA. The initial court ruling had provided a 10-day window for the White House administration to finalize administrative procedures required to cease the invalidated tariff implementation.