The ruling from the U.S. Court of Appeals affirmed that former President Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA), invalidating most of his tariffs and setting the stage for a potential Supreme Court showdown.
At a Glance
- A federal appeals court issued a 7–4 decision on August 29, 2025, ruling that Trump exceeded his authority by using IEEPA to impose broad tariffs
- The decision upheld a May 2025 ruling by the U.S. Court of International Trade in V.O.S. Selections, Inc. v. United States
- The ruling does not immediately nullify the tariffs—they are stayed until October 14, 2025, pending possible appeal to the U.S. Supreme Court
- Certain tariffs, such as those imposed under other statutes (e.g., steel and aluminum under Section 232), remain unaffected
- Legal challenges continue, with the case set to determine possible remedies and whether refunds may apply
The Legal Takedown
On August 29, 2025, the U.S. Court of Appeals for the Federal Circuit (sitting en banc) affirmed, in a 7–4 ruling, that President Trump had exceeded his statutory authority by using IEEPA to impose broad, economy-wide tariffs—including the so‑called “Liberation Day” reciprocal tariffs. The court emphasized that the power to impose tariffs lies with Congress, and the IEEPA does not explicitly grant that authority.
The ruling upheld a prior judgment by the U.S. Court of International Trade in the spring of 2025, which held that the “national emergency” rationale—citing trade deficits and drug trafficking—bore no rational connection to the tariffs imposed, and that granting the president unlimited tariff-setting power via IEEPA would run afoul of constitutional separation of powers.
What Remains—and What’s Next
Although the tariffs are found unlawful, the appeals court issued a stay allowing them to remain in effect until October 14, 2025. This moratorium grants the Trump administration time to take the matter to the U.S. Supreme Court.
The case has also been remanded to the lower court to resolve questions about who may be eligible for relief—whether all importers or only those directly involved in the litigation.
Notably, tariffs enacted under other statutes—such as those on steel, aluminum, autos, copper, and the like—are not impacted by this decision. Those remain in effect, as they were issued under separate, codified trade authority.
Broader Impacts
This ruling represents a significant pushback against executive overreach in trade policy, reinforcing that sweeping tariff power remains the constitutional domain of Congress. It highlights the importance of legal limits on emergency powers like IEEPA and underscores that clear legislative authorization is required for economic interventions of this scale.
The decision injects uncertainty into global supply chains and trade planning, potentially affecting importers awaiting tariff refunds or facing shifting costs. Whether the Supreme Court will take up the case—and how fast—remains unclear, but the October 14, 2025 deadline looms as a pivotal date.
Sources
Reuters
The Guardian
Wall Street Journal
Investor’s Business Daily
Associated Press
