Trump Tariffs Declared ‘Illegal’: What Comes Next for the Former President

A U.S. appeals court ruled Donald Trump’s global tariffs were unlawful under emergency powers, though they remain temporarily in place. Trump plans to challenge the ruling in the Supreme Court. The decision may impact future tariff actions and trade negotiations, and could force the U.S. to refund collected duties.

A U.S. federal appeals court has ruled that President Donald Trump overstepped his authority in imposing sweeping global tariffs, dealing a serious legal blow to one of his hallmark economic strategies. While the tariffs will remain in place for now, the court's 7-4 decision sets the stage for a major constitutional battle in the Supreme Court.

Trump had imposed tariffs as high as 50% on countries with which the U.S. runs trade deficits, and 10% on most others, under the 1977 International Emergency Economic Powers Act. He declared trade deficits a “national emergency,” using the law to bypass Congress. But the court found this move exceeded presidential powers, echoing a May decision by a trade court that consolidated challenges from multiple states and businesses.

The ruling does not immediately overturn the tariffs but gives Trump time to escalate the case to the Supreme Court. If the court ultimately upholds the lower rulings, the U.S. may be forced to refund billions in collected duties, potentially destabilizing Treasury revenues that reached $159 billion by July.

Trump has vowed to continue the legal fight, warning that the court’s decision could “destroy the United States.” Legal experts say while he may still impose tariffs under other statutes—like Section 232 of the Trade Expansion Act or the Trade Act of 1974—those come with restrictions that limit both the scale and speed of action.

Also Read: Man Sets Himself on Fire at Kazakhstan Airport After Domestic Dispute

The ruling also weakens Trump's leverage in ongoing trade negotiations and could prompt some foreign governments to reconsider deals struck under pressure. Despite the setback, officials say Trump’s team has been preparing a “Plan B” to reimpose tariffs using alternate legal routes.