Trump’s Tariffs Headed To Supreme Court In High-Stakes Showdown

A federal appeals court has ruled against President Donald Trump’s use of “reciprocal” tariffs, sparking fresh uncertainty in international trade negotiations.

In a 7–4 decision, judges said Trump exceeded his authority when he used emergency powers to impose tariffs of “unlimited duration on nearly all goods from nearly every country in the world.” The ruling affirms a lower court’s decision but allows the tariffs to remain in effect until at least October 14 while further appeals play out.

The move is a blow to global trading partners who had been negotiating with Washington, many of whom may now adopt a wait-and-see approach as the legal battle heads to the Supreme Court.

Two key outcomes emerged from the court’s latest ruling: the so-called “liberation day” tariffs are currently deemed unlawful, but they remain in effect while appeals continue. Under the executive orders, revenue will still be collected. Should the tariffs ultimately be struck down, those funds may be subject to refund.

The case does not touch every tariff measure. Duties on industries such as steel and aluminum remain outside the scope of the ruling. However, many tariffs imposed during Trump’s first term have already faced challenges before the World Trade Organization, which is reviewing disputes through its own channels.

One controversial measure—Trump’s ending of the “de minimis” exception that allowed duty-free entry of low-value imports—was also not overturned. If confirmed, tariff rates on small shipments would return to pre-“liberation day” levels, often reducing them to zero.

President Trump responded forcefully to the ruling on Truth Social:

“ALL TARIFFS ARE STILL IN EFFECT!” he declared. “Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end. If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak, and we have to be strong.”

He continued: “The U.S.A. will no longer tolerate enormous Trade Deficits and unfair Tariffs and Non Tariff Trade Barriers imposed by other Countries, friend or foe, that undermine our Manufacturers, Farmers, and everyone else. If allowed to stand, this Decision would literally destroy the United States of America.”

Trump closed with a Labor Day message to the nation: “At the start of this Labor Day weekend, we should all remember that TARIFFS are the best tool to help our Workers, and support Companies that produce great MADE IN AMERICA products. For many years, Tariffs were allowed to be used against us by our uncaring and unwise Politicians. Now, with the help of the United States Supreme Court, we will use them to the benefit of our Nation, and Make America Rich, Strong, and Powerful.”

The constitutional debate centers on Congress’s authority to levy tariffs, a power lawmakers have increasingly delegated to the White House over the years. Trump has argued that his actions are consistent with historical precedent, pointing to President Richard Nixon’s 1971 decision to use emergency powers to impose tariffs after abandoning the gold standard.

The trade court rejected that argument in May, combining challenges from multiple businesses and a dozen states. The appeals court has now upheld that rejection but left the tariffs intact while the President takes the fight to the Supreme Court.