A U.S. appeals court has rejected Donald Trump’s use of emergency powers for tariffs, ruling that his actions “exceed the authority” granted by Congress. The decision invalidates the legal underpinnings of his global “reciprocal” tariff policy.
The court’s ruling focused on the International Emergency Economic Powers Act (IEEPA), which it found was misapplied. The judges concluded that the law was designed for specific national security threats and does not provide a legal basis for a president to unilaterally impose tariffs in response to a trade deficit.
This judgment creates significant instability for U.S. trade relations. The informal agreements made with trading partners to mitigate these tariffs are now built on a faulty foundation, making them vulnerable to collapse or renegotiation.
The former president has promised an appeal, sending the case to the Supreme Court for a final resolution. The high court will be asked to rule on the limits of executive power, a decision that will have a lasting impact on how future presidents can respond to perceived economic crises.