Aug 29, 2025
Federal Appeals Court Rejects Trump’s Broad Tariff Authority Under Emergency Powers
In a 7–4 decision, the U.S. Court of Appeals for the Federal Circuit has ruled against former President Donald Trump’s claim that he had the authority to impose broad tariffs under the International Emergency Economic Powers Act (IEEPA). The court upheld the lower court’s finding that Trump’s actions were “invalid as contrary to law,” emphasizing that the Constitution grants Congress exclusive power to regulate international commerce.
Trump claimed broad authority to set tariffs under IEEPA. The law has historically been used to impose sanctions on enemies of the U.S. or freeze their assets. Trump is the first U.S. president to use it to impose tariffs.
The recent court ruling clarifies that this authority remains solely with Congress and cannot be overridden by presidential emergency powers, even when invoked to protect the U.S. economy.
This decision marks a significant reaffirmation of the constitutional separation of powers and the limits of executive authority in matters of international trade.
The Court delayed the impact of its decision through mid-October to allow the Trump administration to appeal to the Supreme Court.
Tariffs have created unsurmountable disruptions and uncertainties for businesses. There are levers that can help manage through uncertain times and optimize supply chain transformation. Check out our previous article on Trade Zones and Bonded Warehouses.
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