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US court declares Trump's tariffs illegal, what is expected to happen now?

2025-08-30 19:34:48Kosova&Bota SHKRUAR NGA REDAKSIA VOX
US court declares Trump's tariffs illegal, what is expected to happen now?
Donald Trump

A federal appeals court in the US has declared illegal most of the trade tariffs imposed by President Donald Trump, arguing that they constitute an excess of his powers as president. These are the so-called "reciprocal" tariffs, which were imposed on almost every country with which the US does trade.

Friday's ruling upheld an earlier ruling by the Court of International Trade, which had rejected Trump's argument that the tariffs were legal under the International Emergency Economic Powers Act (IEEPA), an emergency law that the president used extensively during his term.

The court stressed that the IEEPA does not give the president “the authority to impose tariffs, taxes or other similar charges,” but only the authority to take other economic measures in response to foreign threats. Thus, according to the panel, the tariffs were “invalid and contrary to law,” the BBC reports.

Trump's reaction

Donald Trump immediately reacted, calling the decision “very partisan” and a “disaster for America.” In a post on his Truth Social platform, he warned that the decision would “destroy the United States” if allowed to stand. He added that he would take the case to the Supreme Court.

What is IEEPA?

The 1977 law gives the US president the right to take economic measures in case of emergencies that threaten national security, foreign policy or the economy. This law has also been used by Barack Obama and Joe Biden, mainly to impose sanctions on Russia after the annexation of Crimea and during the war in Ukraine.

However, according to the appeals court, the law does not give the president the right to impose tariffs, as that power belongs to Congress. Trump had argued that the trade deficit posed a threat to national security, but this interpretation was not accepted by the court.

Economic and political consequences

Experts warn that the decision risks creating uncertainty in international markets. Economist Linda Yueh from the University of Oxford told the BBC that businesses may delay trade deals with the US until the Supreme Court makes its final decision. This, she said, could "slow down economic activity".

On the other hand, if the Supreme Court overturns the decision, it would set a dangerous precedent that would give the president broader authority in using IEEPA. But the highest court has often shown itself to be critical of presidential overreach, even when it consists of a conservative majority.

What happens next?

The current ruling leaves the tariffs in place until October 14, giving the US administration time to appeal to the Supreme Court. After that date, they will no longer be enforceable unless there is another ruling.

If the Supreme Court ultimately rules the tariffs illegal, it could spark a major debate over whether billions of dollars in tax revenue should be returned. Trade deals the US has signed with Britain, Japan and South Korea could also be thrown into doubt, with new negotiations thrown into chaos.

However, tariffs imposed on steel, aluminum and copper, which were approved through another legal basis, remain in force and are not affected by this decision.

Political context

The lawsuit is a major test of Donald Trump's political authority and reputation as a negotiator. A loss in the Supreme Court would be a serious blow to his foreign and economic policy, while a victory would give him additional power to use emergency powers more widely in the future.


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