Appeals Court Slams Trump’s Tariffs as Illegal – Trade War Back in Spotlight
A U.S. federal appeals court has delivered a massive blow to former President Donald Trump’s trade policy, ruling that most of his global tariffs were illegal. The court said Trump had exceeded his authority when he used emergency powers to impose billions of dollars in duties on imports from major partners like China, Canada, Mexico, and Europe.
Trump had justified these tariffs under the International Emergency Economic Powers Act (IEEPA), citing national emergencies tied to trade deficits and fentanyl trafficking. But judges ruled the law does not allow the president to slap new tariffs without Congressional approval.
The 7–4 decision leaves Trump’s tariffs in place only until October 14, giving his administration a small window to take the fight to the U.S. Supreme Court. If the ruling stands, it would mark one of the biggest legal setbacks to Trump’s economic agenda, undermining the foundation of his “America First” trade strategy.
Markets are watching closely as this decision could reshape U.S. trade relations, weaken the White House’s ability to wage trade wars, and open new debates about presidential power in economic policy. For global businesses, the uncertainty could disrupt supply chains already stretched by inflation and geopolitical tensions.
The next move now lies with the Supreme Court, which will decide whether Trump’s tariff war can continue—or collapse under legal pressure.
Impact:
The ruling may pressure the U.S. dollar as tariff rollback could ease trade tensions, boosting risk sentiment. But legal uncertainty may keep safe-haven demand for gold and yen intact.
