Trump’s sweeping tariffs ruled as illegal by federal appeals court

A federal appeals court ruled Friday that most of President Donald Trump’s tariffs are illegal.

The U.S. Court of Appeals for the Federal Circuit ruled Trump wasn’t legally allowed to declare national emergencies and impose import taxes on almost every country on earth, a ruling that largely upheld a May decision by a specialized federal trade court in New York.

Most Trump's tariffs ruled as illegal

FILE - US President Donald Trump holds a chart as he delivers remarks on reciprocal tariffs during an event in the Rose Garden entitled "Make America Wealthy Again" at the White House in Washington, DC, on April 2, 2025. (Photo by BRENDAN SMIALOWSKI/

What they're saying:

"We affirm the CIT’s holding that the Trafficking and Reciprocal Tariffs imposed by the Challenged Executive Orders exceed the authority delegated to the President by IEEPA’s text," the court opinion states. "We also affirm the CIT’s grant of declaratory relief that the orders are "invalid as contrary to law."

But the 7-4 court did not strike down the tariffs immediately, allowing his administration time to appeal to the Supreme Court.

The other side:

White House spokeperson Kush Desai said Trump had acted lawfully, and "we look forward to ultimate victory on this matter."

The government has argued that if the tariffs are struck down, it might have to refund some of the import taxes that it’s collected, delivering a financial blow to the U.S. Treasury.

"It would be 1929 all over again, a GREAT DEPRESSION!" Trump said in a previous post on Truth Social.

Why is Trump imposing tariffs? 

What they're saying:

Trump has said the increased tariffs will bring back manufacturing to the United States, while also forcing other countries to reduce their trade barriers to U.S. exports. 

The other side:

Trump argues that foreign exporters will pay the cost of the tariffs, but so far economists have found that most are being paid by U.S. companies. And measures of U.S. inflation have started to tick higher as prices of imported goods, such as furniture, appliances and toys rise.

The backstory:

The trade deals and higher tariffs stem from Trump’s April 2 "Liberation Day" announcement that the United States would impose import taxes of up to 50% on nearly 60 countries and economies. Those duties, originally scheduled for April 9, were then postponed twice, first to July 9 and then Aug. 1.

This is a developing story. Check back for more updates.

The Source: This story was reported from Los Angeles. The Associated Press, FOX News contributed.

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