US Court Declares Trump Tariffs Illegal
A U.S. federal appeals court has dealt a significant blow to Donald Trump’s trade policy, ruling that most of his global tariffs were imposed illegally. The decision challenges a cornerstone of Trump’s economic agenda and opens a new legal fight likely headed to the Supreme Court.
The Court of Appeals for the Federal Circuit found that the former president overstepped his authority under the International Emergency Economic Powers Act (IEEPA). The law, often used for sanctions and asset freezes, does not give the president power to levy tariffs, the court said.
“The power to ‘regulate’ has long been understood to be distinct from the power to ‘tax,’” the court ruled, adding that only Congress has the authority to impose duties.
For now, the tariffs remain in effect until October 14, giving Trump’s legal team time to file an appeal.
Trump Blasts “Partisan Court”
Within hours of the ruling, Trump lashed out on his platform Truth Social, calling the decision a “total disaster for the Country.”
“ALL TARIFFS ARE STILL IN EFFECT!” Trump wrote in all caps. “If these Tariffs ever went away, it would be a total disaster. It would make us financially weak, and we have to be strong.”
He accused the appeals court of being “highly partisan” and vowed to take the case to the Supreme Court. Trump reiterated his belief that tariffs are the “best tool to help our workers” and promised to “Make America Rich, Strong, and Powerful Again.”
The fiery response reflects how central tariffs remain to Trump’s economic and political identity.
Impact on India and Global Trade
The court’s ruling has global consequences, especially for India, one of the countries hardest hit by Trump’s tariff regime.
In 2022, the Trump administration imposed a 25% punitive tariff on Indian exports, citing New Delhi’s discounted purchases of Russian oil. The levy doubled existing duties, bringing the total tariff on some goods to 50%.
Indian sectors such as textiles, footwear, and jewelry have faced severe losses, with economists warning that tariffs could trim India’s GDP growth.
India’s Commerce Minister Piyush Goyal stressed that the country “will neither bow down nor appear weak.” He noted that India is actively seeking alternative markets and strengthening its domestic industries to counter the impact.
While the ruling undermines tariffs imposed under the IEEPA, it does not strike down all of Trump’s trade measures. Duties on steel and aluminum, enacted under different statutes, remain unaffected for now.
Legal and Political Stakes Ahead
The court’s finding strikes at the heart of Trump’s trade agenda, which relied on unilateral tariff powers to reshape global commerce.
If upheld by the Supreme Court, the ruling would limit future presidents’ ability to impose broad tariffs without congressional approval. Legal experts say the decision reinforces the separation of powers by drawing a sharp line between executive authority and congressional control of taxation.
However, Trump’s loyal base is likely to rally around his defiance. His campaign is already framing the case as another example of political persecution.
Outlook: Supreme Court Battle Looms
The next phase of the legal fight could redefine U.S. trade policy. If the Supreme Court overturns the ruling, Trump’s tariff powers would be validated, potentially reshaping global supply chains once again.
If the decision is upheld, it would significantly curtail presidential authority on trade, shifting power back to Congress and creating space for new trade negotiations with allies and rivals alike.
For India and other trade partners, the outcome will determine whether current tariff burdens ease or remain entrenched. As the October 14 deadline nears, global markets and policymakers will be closely watching Washington.