Court Overrules Trump’s Tariff Policy: Supreme Court Is Next Stop

A Historic Ruling in Washington

A federal appellate court in Washington, D.C. has ruled that Donald Trump exceeded his presidential authority when he established his global tariff barriers. In a landmark 7-4 decision, most of the so-called Liberation Day tariffs and the “reciprocal” duties were declared invalid.

The court found that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs, since the law does not mention either duties or taxes. “It seems unlikely that Congress intended to give the president unlimited power to impose tariffs,” the decision reads.

Trump Lashes Out at the Courts

Trump’s response was immediate. On his social media platform, he wrote in all caps: “ALL TARIFFS ARE STILL IN EFFECT!”—accusing the court of political bias. He warned that if the ruling stands, it could “literally destroy the USA.”

A White House spokesperson maintained that the president “lawfully exercised the powers Congress has granted to protect the United States’ national and economic security.”

Small Businesses See Hope—Experts See Plan B

The case was brought by a group of small businesses, who argued the tariffs have been “devastating for small business owners across the country”. With the ruling in hand, many now see a chance for relief.

At the same time, William Reinsch, a former Commerce Department official, noted that the Trump camp likely anticipated the outcome: “It’s widely known that the administration has prepared a plan B—probably by basing the tariff walls on other statutes.”

Supreme Court to Decide Trump’s Trade Policy Legacy

The ruling will not take effect until October 14, giving the Trump administration time to appeal to the Supreme Court. There, the case could become a legal milestone: Just how far do a president’s powers in trade policy extend?

In a single stroke, Trump’s tariffs have been placed in a legal and political limbo—with far-reaching consequences not just for the U.S., but for global trade as a whole.

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