The President of the United States, Mr Donald Trump’s decision to impose tariffs on designated countries, has suffered a fresh set back as the US Court of Appeals for the Federal Circuit delivered a judgment on Friday, maintaing that sweeping tariffs, imposed on many countries including Canada, China, India, Nigeria, and dozens of others, are illegal.
The 7-4 decision, issued on Friday August 29, 2025, alleged that President Trump exceeded his authority by invoking the International Emergency Economic Powers Act (IEEPA) to justify the tariffs, which targeted global trade partners.
The New Diplomat’s checks showed that the ruling was delivered on two sets of tariffs announced by Trump. The “reciprocal” duties imposed on April 2, 2025, which Trump dubbed “Liberation Day,” and a separate set of levies announced in February targeting Canada, China, and Mexico.
These tariffs, ranging from 10% to 50% on various nations, were justified by Trump as a response to trade deficits and issues like fentanyl trafficking.
However, the court determined that the IEEPA, a 1977 law traditionally used for sanctions and asset freezes, does not grant the president of the United States the power to impose such broad import taxes.
Part of the court’s 127-page ruling stated: “The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax.”
In a swift reaction, Trump, taking to his Truth Social account, declared: “ALL TARIFFS ARE STILL IN EFFECT!”
“If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak, and we have to be strong.”
Trump expressed optimism that the tariffs would remain legally binding “with the help” of the Supreme Court.
