Federal Appeals Court Strikes Down Trump’s Tariffs, Declaring Them Beyond Legal Authority

In a significant ruling on August 29, 2025, the U.S. Court of Appeals for the Federal Circuit declared that President Donald Trump’s recent tariff initiatives, introduced under the International Emergency Economic Powers Act, are unlawful. The judgment, issued in Washington, D.C., came in the case V.O.S. Selections, Inc. v. United States, No. 25-1812, and found that the President had overstepped the authority granted by Congress by creating broad-based “reciprocal tariffs” and “trafficking tariffs.” These measures imposed sweeping duties on imports from multiple countries, including China, Canada, and Mexico, with justification tied to economic and security threats such as drug trafficking and illegal migration. By a 7–4 majority, the appellate judges ruled that IEEPA allows targeted restrictions but not the creation of a comprehensive tariff system, which the Constitution reserves for Congress. While most tariffs were struck down, the court gave the administration until October 14, 2025, to seek review from the Supreme Court. Concurring opinions stressed the lack of proportionality between the declared emergencies and the measures imposed, while dissenting judges argued that IEEPA’s broad scope could support presidential action during crises. The panel of judges included Chief Judge Moore along with Judges Lourie, Dyk, Reyna, Hughes, Stoll, Cunningham, Stark, Taranto, Prost, Chen, and Newman, with Judge Cunningham concurring and Judge Taranto writing the dissent.

The United States Court of Appeals for the Federal Circuit has issued a landmark decision declaring that President Donald Trump’s broad tariff measures, introduced under emergency authority, violate federal law.

 

The ruling was delivered on August 29, 2025, in Washington, D.C., in the case V.O.S. Selections, Inc. v. United States, No. 25-1812. It represents one of the most consequential legal challenges to Trump’s trade policies.

 

President Trump invoked the International Emergency Economic Powers Act (IEEPA) earlier in 2025 to impose two sweeping tariff programs. The first, called “reciprocal tariffs,” introduced a 10% duty on nearly all imports, with potential increases of up to 50% for goods from U.S. adversaries, beginning April 2, 2025, which he designated as “Liberation Day.” The second, announced on February 1, 2025, included “trafficking tariffs” targeting China, Canada, and Mexico, citing threats linked to narcotics trafficking and unlawful immigration.

 

In a 7–4 majority, the appellate court found that IEEPA does not authorize the President to enact such far-reaching tariff regimes. The opinion stressed that authority over duties and taxation rests with Congress under the Constitution, and emergency statutes must be interpreted narrowly to prevent excessive concentration of power in the executive. While invalidating most of the tariffs, the judges allowed them to remain in effect until October 14, 2025, to give the administration an opportunity to appeal to the U.S. Supreme Court.

 

The court reasoned that IEEPA enables the President to regulate or block specific imports in times of national emergency but does not empower the executive to create comprehensive tariff systems. It also concluded that citing drug trafficking and immigration as justifications for trade restrictions did not constitute a legitimate emergency under the statute.

 

Judge Cunningham, joined by Judges Lourie, Reyna, and Stark, wrote a concurring opinion emphasizing that Trump’s measures lacked proportionality and a direct connection to the declared emergencies.

 

Dissenting, Judge Taranto—joined by Chief Judge Moore, Judge Prost, and Judge Chen—argued that the broad language of IEEPA could permit tariff actions in emergencies. They warned that the majority’s interpretation may restrict future presidents from responding decisively to global crises.

 

The decision followed a May 28, 2025 ruling by the U.S. Court of International Trade, which had already struck down the tariffs and issued a permanent injunction, though enforcement had been stayed pending appeal.

 

The Federal Circuit panel consisted of Chief Judge Moore and Judges Lourie, Dyk, Reyna, Hughes, Stoll, Cunningham, Stark, Taranto, Prost, Chen, and Newman. Judge Cunningham filed a concurrence, Judge Taranto authored the dissent, and Judge Newman did not participate.

BACKGROUND:

The controversy over Donald Trump’s tariffs stems from his administration’s aggressive trade strategy, which relied heavily on imposing duties on imported goods, particularly from China and other trading partners, as a way to pressure them into negotiating more favorable terms for the United States. Trump justified the tariffs under Section 232 of the Trade Expansion Act, claiming they were necessary for national security, while critics argued the measures were economically harmful and lacked a legitimate security rationale. Businesses, trade associations, and lawmakers challenged the tariffs in court, asserting that the president had exceeded his constitutional and statutory authority. The appeals court ruling is rooted in these longstanding disputes, highlighting the tension between executive power and the limits imposed by federal law, as well as the broader debate about how trade policy should balance national interests, global commerce, and adherence to legal frameworks.

QUESTIONS:

We do appreciate if you would answer the following question/s with reference of question number/s in the comments section:

Q. No. 1 Who will appeal this decision to the Supreme Court, and how quickly will the case be taken up?

Q. No. 2 How might this ruling affect America’s ongoing trade negotiations with China, Canada, and Mexico?

Q. No. 3 What economic impact will the suspension of these tariffs have on U.S. industries and consumers?

Q. No. 4 Could Congress introduce new legislation to expand presidential powers over trade in emergencies?

Q. No. 5 How will Trump’s political allies and critics respond to this legal setback?

Q. No. 6 What precedent does this case set for future presidents attempting to use IEEPA for economic measures?

Q. No. 7 Will businesses seek compensation for losses caused by tariffs now ruled illegal?

Q. No. 8 How might this ruling influence upcoming election debates on trade and executive authority?

Q. No. 9 What role will international trade partners play in shaping the next phase of this legal battle?

Q. No. 10 Is there a possibility of narrower, legally compliant tariffs being reintroduced under a different framework?

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