A federal appeals court has delivered a brutal legal blow to Donald Trump’s trade legacy, ruling that the president had no legal authority to impose sweeping tariffs under emergency powers. The decision declares the tariffs unconstitutional—echoing a lower court’s conclusion—and throws a wrench into the cornerstone of Trump’s economic agenda.
Though the tariffs remain in place for now pending further appeals, likely heading to the Supreme Court, the ruling marks a turning point in the long-running legal battle over Trump’s use of the International Emergency Economic Powers Act (IEEPA) to slap tariffs on entire countries.
The court sided with a specialized federal trade court in New York, which found earlier this year that Trump’s invocation of emergency authority to justify global tariffs violated constitutional limits. Legal experts say the ruling could have far-reaching consequences for future presidents looking to sidestep Congress on trade policy.
Jake Tapper: “Big Blow” to Trump Agenda
CNN anchor Jake Tapper called the decision a “big blow” to Trump’s trade strategy on air. The New York Times’ Maggie Haberman joined Tapper shortly after the ruling dropped, agreeing that it poses a serious challenge to the legal foundation of Trump-era trade policy.
The response online was swift and biting, with users reacting with a mix of celebration and sarcasm.
Frank Amari, a former public defender, summed up the moment with mockery on Bluesky: “So much winning!!”
Historian and writer Trent Nelson weighed in with dry finality: “Yea. Obviously.”
Economist Justin Wolfers broke down the implications while making clear his support: “BOOM. The federal appeals court rules Trump’s tariffs illegal, because they are. There’s no national emergency, and so the power to tariff a country rests with Congress. Trump admin has lost at every stage of the process, but stay tuned for the Supremes to chime in.”
He continued: “This won’t end all tariffs. This ruling applies to tariffs applied to entire countries (which is most of the tariff agenda). The industry-specific tariffs use a different legal authority, and will remain. The White House has other (more limited) tariff powers it’ll dust off.”
Analyst Christian Roselund added historical context, writing: “This is the second court ruling to affirm that #Trump’s use of the International Emergency Economic Powers Act (IEEPA) to set sweeping, economy-wide tariffs is illegal. The Trump Admin will almost certainly appeal. Not sure what the next stop is.”
And author Dmitry Grozoubinski didn’t hide his cynicism about what might come next from the conservative-leaning Supreme Court: “Appeals court says Trump’s fentanyl and reciprocal tariffs are unlawful. Looking forward to the 6-3 SCOTUS decision which upholds them anyway because the Constitution clearly states Trump is an omnipotent God-Emperor destined to reign upon the Golden Throne until all is returned to dust.”
Tariffs, Prices, and Power
Economists have long warned that Trump’s global tariff spree—especially those targeting China and other major economies—would backfire on U.S. consumers. The court’s ruling aligns with those concerns, as warnings of “staggering” price hikes continue to circulate.
The court didn’t strike down the tariffs immediately, opting instead to let them stand while the legal battle plays out. But the writing is on the wall: Trump’s reliance on emergency powers for sweeping trade action is illegal.
