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What happens next after Trump tariffs ruled illegal?

August 30, 2025

The U.S. Court of Appeals has ruled that most of Donald Trump's reciprocal tariffs represent an illegal overreach of presidential emergency powers under the International Emergency Economic Powers Act (IEEPA). In a 7-4 decision, the court determined that the IEEPA does not grant the president authority to impose global tariffs, upholding a previous ruling by the Court of International Trade. The tariffs will remain in place until mid-October, allowing time for an appeal to the Supreme Court, which Trump has signaled he intends to pursue.

Who is affected

  • Countries trading with the US that are subject to Trump's reciprocal tariffs
  • US businesses and consumers facing uncertainty about trade policies
  • Global markets and international trade relationships
  • Major economies with individual trade deals with the US (UK, Japan, South Korea)
  • Countries currently negotiating trade deals with the US

What action is being taken

  • The US Court of Appeals is maintaining the tariffs until mid-October despite ruling them illegal
  • Trump is rejecting the judgment and signaling an appeal to the Supreme Court
  • The court is restricting presidential use of the International Emergency Economic Powers Act for imposing tariffs
  • The legal system is processing challenges to presidential authority regarding trade policy

Why it matters

  • The ruling creates immediate uncertainty in US and global markets that could dampen economic activity
  • Billions of dollars in collected tariffs might need to be repaid if the ruling stands
  • Existing and in-negotiation trade deals with major economies could be thrown into chaos
  • The case represents a significant test of presidential authority and separation of powers
  • The ruling directly challenges Trump's flagship economic policy and his reputation as a dealmaker
  • The decision could set precedents for how future presidents can use emergency powers

What's next

  • The case will likely proceed to the Supreme Court before the mid-October deadline
  • After October 14, the reciprocal tariffs will no longer be enforceable unless overturned by the Supreme Court

Read full article from source: BBC