What’s Next for Trump’s Tariffs After US Court Strikes Them Down
What Happens Next for Trump’s Tariffs After a U.S. Court Strikes Them Down
A federal appeals court has dealt a significant blow to former President Trump’s sweeping tariff policy, ruling that his reliance on the International Emergency Economic Powers Act (IEEPA) overstepped executive authority. The 7–4 decision found that IEEPA does not explicitly grant the president power to impose tariffs—a core congressional domain—marking a legal setback for Trump’s trade agenda. The ruling upheld an earlier judgment by the U.S. Court of International Trade but paused immediate enforcement and allowed the tariffs to remain in effect until October 14 amidst ongoing appeals. AP NewsThe Wall Street JournalReutersAl JazeeraWikipedia
The decision places Trump’s tariff strategy at a crossroads. If overturned, the U.S. Treasury could face massive refund obligations—tariffs collected through July totaled $159 billion, more than double from the previous year—raising alarms about “financial ruin.” AP NewsHindustan TimesThe Economic Times
Despite the setback, the administration plans to appeal to the Supreme Court, with Trump denouncing the decision as a “total disaster for the country.” AP NewsThe Times of India In the interim, the administration may lean on constrained alternatives: the Trade Act of 1974 (allowing up to 15% tariffs for 150 days) or Section 232 for national-security-related duties—both far narrower in scope
| Key Area | Details |
|---|---|
| Legal Basis | Court ruled the IEEPA does not authorize sweeping tariffs; that’s Congress’s role. AP NewsAl JazeeraReuters |
| Tariffs Remain Active Until | October 14 (pending appeals) The Wall Street JournalReutersThe Guardian |
| Potential Treasury Impact | $159 billion collected by July; risk of refunds could be financially damaging. AP NewsHindustan TimesThe Economic Times |
| Next Legal Step | Administration to appeal to the Supreme Court; Trump calls decision a “total disaster.” AP NewsThe Times of India |
| Alternate Legal Paths | – Trade Act of 1974: limited (15%, 150-day) tariffs – Section 232: requires investigations and has narrow scope. Hindustan TimesThe Economic Times |
| Broader Implications | Tariff leverage in trade negotiations weakened; markets and investors facing uncertainty. The Wall Street Journal |
