A federal appeals court has ruled that most of former President Donald Trump’s global tariffs are illegal, declaring that he overstepped his authority under the International Emergency Economic Powers Act (IEEPA). The 7-4 decision came down on Friday, August 30, 2025, affirming a lower court's finding that the president does not have the power to impose such tariffs.
The court’s ruling specifically addresses the sweeping tariffs, which included a baseline of 10% on nearly all U.S. trading partners and “reciprocal” tariffs that could reach as high as 50%. Although the ruling declares the tariffs illegal, they will remain in effect until October 14, 2025, as a likely appeal to the Supreme Court is anticipated.
This legal battle has been a focal point in U.S. trade policy discussions since Trump first implemented the tariffs during his presidency in 2018. Critics have argued that the tariffs have harmed American consumers and businesses, while supporters have claimed they are necessary to protect U.S. industries from unfair foreign competition.
The outcome of the Supreme Court's potential involvement could significantly impact American consumers and businesses, as the tariffs have created widespread uncertainty in the market. In related developments, major companies like Spirit Airlines are grappling with financial challenges, with the airline recently filing for bankruptcy again amid plummeting demand. As previously reported, the economic implications of these tariffs are far-reaching and continue to evolve.
