A Pillar of Trump’s Trade Policy Topples in Court

A U.S. federal appeals court has toppled a central pillar of Donald Trump’s protectionist trade policy, declaring illegal the tariffs he imposed on most of the world using a national emergency law. The decision represents a significant legal defeat for the former president and his “America First” agenda.
The court ruled that the International Emergency Economic Powers Act (IEEPA), invoked by Trump, was the wrong tool for the job. This legislation allows a president to regulate international economic transactions during a crisis, but the court found it does not provide the authority to set broad tariffs, a function that belongs to Congress.
The verdict throws into question the stability of the global trading system, as several countries had made concessions to the U.S. to gain exemptions from these now-invalidated tariffs. The ruling effectively says these deals were coerced through an illegal threat, opening the door for them to be challenged or renegotiated.
An appeal to the Supreme Court is imminent, meaning the tariffs will remain in place temporarily. The case will force the high court to confront a major constitutional question about the limits of presidential power in economic policymaking. This ruling could reshape how future presidents approach trade disputes and the use of emergency declarations.