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U.S. Appeals Court Officially Rules: Trump Tariff Unlawful and Void!

Trade Night Sailing 2025-08-30 09:55:29

Eastern Time, August 29, 2025, the U.S. Court of Appeals for the Federal CircuitRuling by a 7 to 4 vote, most of President Trump's tariff policies were deemed illegal.。

The court held that the International Emergency Economic Powers Act (IEEPA) grants the President the power to take action in a national emergency.However, it does not explicitly authorize the President to levy tariffs, duties, or similar taxes, as the Constitution primarily grants the power to levy tariffs to Congress.。

Screenshot of the appellate court's judgment document

⚠️ Illegal tariffs include:

"Trafficking Tariffs"Fentanyl tariffs: 20% for China, 25% for Mexico, 35% for Canada. The reason is that these countries are suspected of contributing to the influx of fentanyl and immigration into the United States.

"Reciprocal tariffs"Impose reciprocal tariffs of 10% to 50% on 187 countries and regions worldwide, and impose a "benchmark tariff" of 10% on most imported goods.

⚠️ Court Ruling Details:

The majority opinion of the appellate court (comprising 7 judges, including 6 appointed by Democratic presidents and 1 appointed by a Republican president) upheld the lower court's ruling. The court stated:

IEEPA is intended to address "unusual and extraordinary threats," but it does not explicitly mention "tariffs" or "taxes."Trump's tariffs "are unlimited in scope, amount, and duration," applying to almost all imported goods and countries, with rates constantly changing, exceeding the authority granted by the IEEPA.。

"Reciprocal tariffs" and "narcotics tariffs" were both deemed illegal because they do not target specific emergency threats but are used for broad trade policy adjustments.The court emphasized that if Congress intends to authorize the President to impose tariffs, it must use "clear and precise terms," and the IEEPA lacks such language.

The ruling does not affect tariffs imposed by Trump based on other laws, such as those on steel, aluminum, copper, and automobiles under Section 232 of the Trade Expansion Act of 1962 for national security reasons.

⚠️ Effective Date:

The court allows the existing tariffs to remain in effect until October 14, 2025.，To give the Trump administration time to appeal to the U.S. Supreme Court.。

This means that tariffs will not be immediately lifted in the short term.If the Supreme Court upholds the decision, the government may need to refund the tariffs that have already been collected.

⚠️ Trump administration's response:

Trump fiercely criticized the ruling on Truth Social as "highly partisan," stating that if the tariffs are lifted, it will "destroy America" and compared it to the "Great Depression of 1929." He stated that "all tariffs remain in effect" and promised to appeal to the Supreme Court.

White House spokesman Kush Desai stated that the government will "seek ultimate victory" and may use other presidential powers to maintain the tariffs. White House trade advisor Peter Navarro previously indicated that even if they lose the case, they will "find another way."

On May 28, 2025, the U.S. Court of International Trade previously ruled that the Trump tariffs were illegal. The three-judge panel of the court (including judges appointed by Trump) determined that the IEEPA does not grant the president "unlimited tariff power" and ordered an immediate halt to the collection of these tariffs.

It is understood that, in addition, at least 8 similar lawsuits are ongoing, including a case filed separately by California.

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U.S. Appeals Court Officially Rules: Trump Tariff Unlawful and Void!

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