Summarised by Centrist
A US federal appeals court has ruled that Donald Trump lacked the legal authority to impose many of his sweeping global tariffs, declaring the measures “unbounded in scope” and beyond presidential powers under existing law.
The 7–4 decision targets Trump’s use of the International Emergency Economic Powers Act (IEEPA) to justify tariffs, stating the statute contains no language about tariffs or taxation, nor does it include safeguards to limit presidential overreach.
Trump immediately responded online, writing in capital letters that “ALL TARIFFS ARE STILL IN EFFECT!” and accusing the judges of political bias. “If allowed to stand, this Decision would literally destroy the United States of America,” he claimed, calling tariffs “the best tool to help our Workers” and support “MADE IN AMERICA” products.
The ruling strikes down Trump’s “liberation day” 10% baseline tariffs and his “reciprocal” tariffs on countries he accused of unfair trade. The tariffs had triggered widespread uncertainty and inflation concerns, and were challenged by small businesses arguing they were “devastating” to the economy.
Trump’s administration pre-emptively filed objections, with senior officials calling the ruling a “dangerous diplomatic embarrassment.” A White House spokesperson insisted Trump had acted lawfully and vowed to win on appeal: “The president’s tariffs remain in effect, and we look forward to ultimate victory on this matter.”
The case, VOS Selections Inc v Trump, is expected to go before the US Supreme Court.
