A US federal appeals court has ruled that most of former President Donald Trump’s sweeping global tariffs were unlawful, delivering a major legal blow to his trade agenda and setting the stage for a potential Supreme Court battle.
In a 7–4 decision, the US Court of Appeals for the Federal Circuit declared that Trump’s “reciprocal” tariffs on dozens of countries, along with separate levies on China, Mexico, and Canada, were “invalid as contrary to law.” The court rejected Trump’s claim that the tariffs were justified under the International Emergency Economic Powers Act (IEEPA), stressing that the law does not grant presidents the authority to impose taxes or tariffs — powers the Constitution reserves for Congress.
The ruling will officially take effect on October 14 unless the administration successfully petitions the Supreme Court.
Trump blasted the decision on Truth Social, calling it partisan and warning that striking down the tariffs would “literally destroy the United States of America.” He argued that removing the duties would weaken the country economically, making it vulnerable to foreign exploitation.
The tariffs, first imposed through executive orders in April, included a baseline 10% levy on nearly all imports and additional “reciprocal” tariffs aimed at countries with trade surpluses against the US. Trump had declared the rollout “America’s liberation day” from unfair trade practices.
However, lawsuits filed by small businesses and several states challenged the legality of the tariffs, leading to a series of court defeats. The Court of International Trade first invalidated the measures in May, a ruling that was later upheld by the appellate court.
Friday’s decision also nullifies Trump’s tariffs on China, Canada, and Mexico, which he had defended as necessary to combat drug imports. Tariffs on steel and aluminum, imposed under separate legal authority, remain unaffected.
The White House had argued that dismantling Trump’s tariff regime could trigger a financial crisis comparable to the Great Depression, warning of “catastrophic consequences” for the economy and national security.
The case now appears headed to the US Supreme Court, where six of the nine justices are conservative appointees, including three nominated by Trump. The court has previously struck down expansive uses of executive power under what it calls the “major questions doctrine,” raising the prospect that Trump’s trade strategy could face the same fate.
If the justices agree to hear the case, they will decide whether Trump’s sweeping tariff programme represented legitimate presidential authority — or an unconstitutional overreach into powers reserved for Congress.