A federal court ruling has gutted the core of Donald Trump’s trade strategy, declaring that his use of emergency powers to impose tariffs on a global scale was illegal. The decision invalidates the legal mechanism he used to pressure allies and adversaries alike.
The U.S. Court of Appeals for the Federal Circuit found that the former president misapplied the International Emergency Economic Powers Act (IEEPA). The court determined that the law’s provisions for regulating international economic transactions do not extend to imposing broad tariffs, a power reserved for Congress.
This judgment casts a long shadow over the trade deals secured during the Trump era. These agreements were a direct response to the tariff threat. The ruling that this threat was unlawful gives countries a strong basis for challenging the deals they made under duress.
The former president has vowed to fight the decision at the Supreme Court. The case will force a national conversation about the appropriate scope of presidential power in an era of complex global challenges, testing whether a self-declared emergency can justify bypassing the legislative branch on fundamental economic policy.