Aftermath of Court Ruling on Trump's Tariffs: What Lies Ahead?

Sun Oct 19 2025 02:49:07 GMT+0300 (Eastern European Summer Time)

A federal appeals court declared most of Donald Trump's trade tariffs illegal, leading to uncertainty in the U.S. economy and trade relationships. With potential Supreme Court challenges brewing, what does this mean for future tariffs and economic policy?

In a significant ruling, a federal appeals court deemed many of former President Donald Trump's tariffs illegal, claiming they exceeded his emergency powers. The ruling is set to maintain tariffs until mid-October, potentially leading to a Supreme Court battle. If upheld, this could create volatility in the U.S. economy and disrupt international trade, raising critical questions about future economic policy and political dynamics.

Aftermath of Court Ruling on Trump's Tariffs: What Lies Ahead?

A federal appeals court has ruled that most of Donald Trump's tariffs are an overreach of his use of emergency powers as president.

The so-called reciprocal tariffs - imposed on nearly every country the US trades with - are being illegally imposed, the US Court of Appeals stated, supporting a previous decision from the Court of International Trade. Trump's 10% tariffs on imports were aimed at correcting what he called unfair trade relations.

Although the court did not halt the tariffs, its ruling allows them to continue until mid-October, paving the way for a potential showdown in the Supreme Court.

What did the appeals court say?

In its 7-4 decision, the appellate court claimed Trump lacked the authority to impose global tariffs, as the law he cited, the International Emergency Economic Powers Act (IEEPA), does not grant such powers. Trump criticized the judgment as partisan and catastrophic for the U.S.

What is the IEEPA?

The IEEPA, enacted in 1977, grants presidents the authority to respond to national emergencies but does not empower them to impose tariffs. The court clarified that the act does not include provisions for tariff imposition.

Why is this important?

This ruling represents a major setback for Trump's economic policy and could have profound effects on the U.S. economy and global markets. With businesses facing uncertainty over tariff structures, international trade dynamics may shift pending the Supreme Court’s decision.

What happens next?

Trump indicated on social media that he plans to appeal the ruling to the Supreme Court. The outcome could set a significant precedent regarding presidential powers to impose tariffs and potentially sway future economic policy in the U.S.

What if the tariffs are ruled illegal?

A Supreme Court affirmation may destabilize financial markets and raise questions regarding the collection of revenues from tariffs already in effect, impacting various trade agreements.

Are there still tariffs in place?

Despite the ruling, Trump's tariffs will remain effective until mid-October, affecting numerous imports. However, separate tariffs on certain metals continue unaffected by this decision.