NextFin news, On Tuesday, September 16, 2025, the US Court of Appeals for the Federal Circuit ruled that former President Donald Trump did not have the legal authority to impose broad tariffs on imports from almost every country. The court found that Trump overstepped his powers under an emergency law, largely upholding a previous decision by a federal trade court in New York.
The ruling, delivered by a 7-4 majority, stated that it was unlikely Congress intended to grant the President unlimited authority to impose tariffs unilaterally. However, the court did not immediately strike down the tariffs, allowing the Trump administration time to appeal the decision to the US Supreme Court.
This decision follows a May ruling by the US Court of International Trade in New York that blocked the sweeping tariffs imposed under the emergency-powers law, raising questions about the legality of the tariff measures that have affected global markets and trade relations.
Experts have noted that the ruling exposes legal flaws in the US tariff policy under Trump’s administration. Jeffrey Schwab, director of litigation at the Liberty Justice Center, representing small businesses affected by the tariffs, said the decision protects American businesses and consumers from the uncertainty and harm caused by unlawful tariffs.
Huo Jianguo, former director of a research institute under China’s Ministry of Commerce, commented that the arbitrary tariff hikes violated World Trade Organization rules and disrupted international trade. He warned that while tariffs might bring short-term gains, they would fuel inflation and increase burdens on American businesses and consumers.
The ruling adds pressure on the US government as the current tariff policy shows contradictions, with duties raised on some countries while exemptions are extended to others. This inconsistency reflects growing awareness among policymakers of the economic damage caused by tariffs, which is expected to increase opposition from US businesses and consumers.
The case is now pending further appeal, with the Supreme Court expected to make a final decision on the legality of the tariffs imposed during Trump’s administration.
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