US appeals court declares Trump’s tariffs illegal

A divided United States appeals court, on Friday, August 29, 2025, ruled that most of Donald Trump’s tariffs are illegal.

The court allowed the tariffs to remain in place through October 14 to give the Trump administration a chance to file an appeal with the U.S. Supreme Court.

The decision comes as a legal fight over the independence of the Federal Reserve also seems bound for the Supreme Court, setting up an unprecedented legal showdown this year over Trump’s entire economic policy.

Trump has made tariffs a pillar of U.S. foreign policy in his second term, using them to exert political pressure and renegotiate trade deals with countries that export goods to the United States.

The tariffs have given the Trump administration leverage to extract economic concessions from trading partners but have also increased volatility in financial markets.

Trump lamented the decision by what he called a “highly partisan” court, posting on Truth Social: “If these Tariffs ever went away, it would be a total disaster for the Country.”

He nonetheless predicted a reversal, saying he expected tariffs to benefit the country “with the help of the Supreme Court.”

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The 7-4 decision from the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., addressed the legality of what Trump calls “reciprocal” tariffs imposed as part of his trade war in April, as well as a separate set of tariffs imposed in February against China, Canada, and Mexico.

Democratic presidents appointed six judges in the majority and two judges who dissented, while Republican presidents appointed one judge in the majority and two dissenters, Reuters reported.

The court’s decision does not impact tariffs issued under other legal authority, such as Trump’s tariffs on steel and aluminum imports.

Trump justified both sets of tariffs – as well as more recent levies – under the International Emergency Economic Powers Act. IEEPA gives the president the power to address “unusual and extraordinary” threats during national emergencies.

The court said: “The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax.

“It seems unlikely that Congress intended, in enacting IEEPA, to depart from its past practice and grant the President unlimited authority to impose tariffs.”

The Star