A federal appeals court has decisively rejected Donald Trump’s claim that he has nearly unlimited authority to impose tariffs under national emergency laws. The court declared his use of the International Emergency Economic Powers Act (IEEPA) to tax imports from around the globe was illegal, dealing a major blow to his trade agenda.
The ruling stated that Congress did not grant the president a “blank check” to set tariff policy when it passed the IEEPA. The judges noted the law was intended for specific, targeted actions against national security threats, not as a tool to overhaul international trade relationships based on economic statistics like the trade deficit.
This decision directly impacts the 10% “baseline” tariff and other higher duties Trump imposed on a vast array of goods. It also casts doubt on the deals he struck with nations that agreed to certain terms to get relief from those same tariffs. The court essentially found that the entire premise of these negotiations was based on an unlawful assertion of power.
The former president has vowed to take the fight to the Supreme Court, which will now likely have the final say. The ruling has been praised by free-trade proponents and legal scholars who argued Trump’s actions blurred the lines between executive and legislative authority, creating a dangerous precedent that the appeals court has now sought to correct.