A federal appeals court has ruled that Donald Trump’s sweeping program of “reciprocal” tariffs is illegal, a decision that challenges the legality of one of his most significant economic policies. The court found that he exceeded his authority by using an emergency law for a purpose it was not designed for.
The ruling specifically targets the former president’s use of the International Emergency Economic Powers Act (IEEPA). The court concluded that the act does not grant the executive branch the power to set tariffs, a function constitutionally reserved for Congress. The judges were not convinced by the argument that a trade deficit constituted a valid national emergency for this purpose.
The verdict creates significant uncertainty in the world of international trade. The many side deals and informal agreements reached by the Trump administration are now vulnerable, as they were predicated on the threat of tariffs that have been declared unlawful.
An appeal to the Supreme Court is certain, which will ultimately decide the fate of the tariffs and the limits of presidential power. The case has evolved into a fundamental debate about the separation of powers and the president’s ability to act unilaterally in shaping the nation’s economic destiny.