The aggressive tariff strategy that defined Donald Trump’s presidency has hit a formidable legal wall. A federal appeals court ruled that his use of an emergency act to impose duties on nations worldwide was illegal, challenging the very foundation of his trade war.
The 7-4 decision by the U.S. Court of Appeals for the Federal Circuit targeted Trump’s reliance on the International Emergency Economic Powers Act (IEEPA). The court determined that citing the U.S. trade deficit as a national emergency to trigger the act was a misuse of the law, which was designed for more acute security threats.
This legal blow jeopardizes the complex web of informal trade arrangements the Trump administration established. These deals, often involving quotas and market-access promises, were negotiated under the duress of tariffs that have now been found to be unlawful, rendering the agreements themselves vulnerable.
The former president has vowed to appeal, pushing the constitutional conflict between the executive and legislative branches over trade policy toward the Supreme Court. The ruling does not affect tariffs on steel and aluminum under Section 232, but it significantly curtails a president’s ability to unilaterally impose broader levies without congressional consent.