Implications of the Ruling on Trump's Tariffs: What's Next?

Sun Oct 19 2025 23:44:28 GMT+0300 (Eastern European Summer Time)

A recent appeals court ruling declared many of Donald Trump's tariffs illegal, raising questions about their future and potential impacts on the U.S. economy. This article explores what the court's decision means, its basis, and the next steps.

The U.S. Court of Appeals ruled that most of Donald Trump's tariffs were unlawfully imposed, citing an overstep in using emergency powers. While the ruling does not immediately lift the tariffs, it sets a timeline for a potential Supreme Court review, raising significant concerns regarding U.S. trade policy and economic implications.

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 said on Friday.

The decision upholds a ruling in May from the Court of International Trade, which also rejected Trump's argument that his global tariffs were permitted under an emergency economic powers act.

Many of the tariffs that would be affected by the ruling stem from an announcement in April of a flat 10% rate on imports from all countries, which Trump said would even out unfair trade relations with the US.

The court did not halt the tariffs but instead said they would remain in place until mid-October, setting up a further legal challenge in the US Supreme Court.

In its 7-4 decision, the appellate court backed a lower court's finding that Trump did not have the authority to impose global tariffs.

This was largely because of the law Trump used to justify the policies, the International Emergency Economic Powers Act (IEEPA), which the judges said did not grant the power to impose tariffs, duties, or the like, or the power to tax.

The US Court of Appeals rejected Trump's argument that the tariffs were permitted under his emergency economic powers, calling the levies invalid as contrary to law.

Trump immediately criticized the judgement, claiming the appeals court was highly partisan and that the ruling was a disaster for the country.

Trump argued that the tariffs were necessary to protect U.S. national security from unfair trade relationships.

The decades-old IEEPA allows a president to respond to significant threats from overseas but the appeals court determined it did not provide authority for imposing tariffs.

This ruling not only affects Trump's agenda but could also have immediate effects on the U.S. economy and international trade, leading to uncertainty in financial markets.

As the case moves toward the Supreme Court, its implications could create significant impacts on U.S. trade policy and the global economy.