A federal appeals court has struck down President Donald Trump’s sweeping tariffs, ruling that his administration overstepped its legal authority by invoking emergency powers to impose duties on goods, according to the court filing.
A federal court blocked Trump’s emergency tariff orders in May, ruling that the International Emergency Economic Powers Act (IEEPA) does not authorize the sweeping reciprocal tariffs he imposed in April. The U.S. Court of Appeals for the Federal Circuit on Aug. 29 upheld a lower court decision invalidating five executive orders that levied tariffs under the IEEPA.
Writing for the majority, the judges said that the IEEPA’s authorization to “regulate importation” does not grant the president the power to unilaterally impose taxes on trade. The dispute centered on two sets of tariffs issued early in 2025.
The first, dubbed the “Trafficking Tariffs,” followed Trump’s declaration of a national emergency at the southern border. Citing the flow of opioids and criminal activity from Mexico, Canada, and China, Trump ordered 25% duties on nearly all Mexican and Canadian imports and a 10% duty on Chinese goods, later raised to 20%.
The second package, the “Reciprocal Tariffs,” was broader. In April 2025, Trump imposed a baseline 10% duty on imports from almost every U.S. trading partner, with additional duties ranging up to 50% depending on the country. China’s rate was ratcheted up as high as 125% before being rolled back during negotiations.
These tariffs were to remain in place indefinitely, subject only to presidential modification. The orders prompted lawsuits from both private companies and a coalition of 12 states. They said that Congress, not the White House, holds the constitutional power to impose tariffs, and that Trump’s actions far exceeded any authority delegated under IEEPA.
Trump responded on Truth Social and said the decision was incorrect. He warned that removing the tariffs would devastate the country and vowed to defend them with the help of the Supreme Court.
The Trump administration faced several lawsuits after the president’s April “Liberation Day” announcement. Shortly after, Trump ordered a 90-day pause on all tariffs except those targeting China, citing its retaliation against the United States.
Trump has been actively negotiating tariff agreements, granting Mexico more time to strike a deal following a “very successful” call with President Claudia Sheinbaum. While the U.S. and China extended a temporary trade truce to avoid returning to April’s 100% tariff levels, Trump doubled tariffs on India to 50% in response to its Russian oil purchases, potentially straining relations with a key U.S. ally.
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