A U.S. appeals court has struck down the legal justification for President Donald Trump’s widespread “reciprocal” tariffs, ruling that he improperly used a national emergency law to implement them. This decision jeopardizes a cornerstone of his economic legacy and could lead to a massive unraveling of his trade policies.
In a detailed opinion, the court found that the International Emergency Economic Powers Act (IEEPA) was not designed to allow a president to impose tariffs as a remedy for trade imbalances. The law, passed in 1977, provides for specific economic sanctions in genuine emergencies, and the court found that a long-standing trade deficit did not meet this criteria in the way Congress intended.
The judgment creates immediate uncertainty for international commerce and the many side-deals Trump made with foreign leaders. These arrangements, which often involved countries agreeing to import quotas or making investment pledges, may now be voidable since they were negotiated under the threat of illegally imposed duties.
An appeal to the Supreme Court is expected, which will keep the tariffs active pending a final decision. However, the ruling empowers U.S. importers who have been paying these duties to seek billions in refunds. The case now pivots to the Supreme Court, which will be asked to weigh in on the fundamental limits of presidential economic power.
Foundation of Trump’s Tariff Regime Ruled Illegal by Appeals Court
