Federal Appeals Court Rules Trump's "Liberation Day" Tariffs Unlawful; Administration Vows Supreme Court Appeal

The U.S. Court of Appeals for the Federal Circuit has declared former President Donald Trump's "Liberation Day" tariffs unlawful, ruling that he exceeded his presidential authority by leveraging emergency powers for widespread tariff implementation without explicit congressional approval. The court's 7-4 decision on August 29, 2025, upheld a lower court's finding that the tariffs, enacted under the International Emergency Economic Powers Act (IEEPA), were unlawful.

The tariffs, initially introduced on April 2, 2025, included a baseline 10% duty on numerous imports and higher, country-specific rates, justified by the administration as necessary responses to national emergencies related to trade deficits. Despite the appellate court's declaration of unlawfulness, the tariffs are slated to remain in effect. The court granted a stay of its ruling until October 14, 2025, allowing the Trump administration to seek review from the U.S. Supreme Court.

This legal challenge highlights a critical juncture in the debate over executive power in trade policy. The administration's decision to appeal signals a firm commitment to its economic agenda. The "Liberation Day" tariffs, some reaching as high as 50%, were implemented with the stated aim of rectifying perceived unfair trade practices and reducing the nation's trade deficits. However, these measures faced immediate opposition from businesses and states arguing the president lacked the requisite authority under the IEEPA.

The U.S. Court of International Trade had previously ruled on May 28, 2025, that Trump had overstepped his bounds, leading to a temporary suspension of the tariffs before the administration's appeal. The IEEPA, typically used for economic sanctions, had not been previously invoked by a president for tariff imposition. The appeals court's majority opinion emphasized that the legislation does not explicitly grant the president the power to levy tariffs, framing such authority as a fundamental congressional prerogative.

The administration's resolve to pursue a Supreme Court appeal indicates the potential for a prolonged legal contest, the resolution of which could substantially influence U.S. trade policy and the balance of power between the executive and legislative branches. In the interim, the tariffs continue to impact global trade dynamics and domestic industries, contributing to an atmosphere of uncertainty for businesses involved in international commerce.