Appeals court blocks Trump's global tariff program

The U.S. Court of Appeals for the Federal Circuit ruled 7-4 on Aug. 29, 2025 that Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA). The court found his sweeping tariffs on nearly all imports violated the constitutional requirement that Congress controls trade policy. The ruling was penned by the full en banc court after consolidating challenges from state attorneys general and small businesses.

Trump's Liberation Day tariffs imposed baseline rates of 10% on most countries, rising to 50% on India and 34% on China. The court called these rates 'unbounded in scope, amount, and duration' because they had no time limits and covered nearly all imports without Congressional approval. The opinion emphasized that IEEPA never explicitly mentions tariffs or duties as authorized emergency measures.

The ruling blocked Trump's reciprocal tariffs and fentanyl trafficking duties on China, Mexico, and Canada. However, some steel and auto tariffs remained in effect because they relied on different legal authorities under Section 232 national security provisions. The Federal Circuit vacated the universal injunction but affirmed that the IEEPA-based tariffs exceeded statutory authority.

Trump's tariffs generated substantial revenue in 2025. The Congressional Budget Office reported that tariff collections for fiscal year 2025 totaled $195 billion, a 150% increase over 2024. Monthly customs duties surged from $7 billion in Jan. 2025 to approximately $30 billion by Sep., reflecting the Liberation Day tariffs taking effect in Apr..

The Congressional Budget Office estimated Trump's tariffs would reduce the rate of real GDP growth by 0.06 percentage points per year on average from 2025 to 2035, with GDP 0.6% lower by 2035. Inflation would increase by an annual average of 0.4 percentage points in 2025 and 2026. These projections account for both revenue gains and economic drag from higher import costs.

The appeals court delayed enforcement of its ruling until Oct. 14, 2025 to allow Trump to appeal to the Supreme Court. Six conservative justices on the court include three Trump appointees: Neil Gorsuch, Brett Kavanaugh, and Amy Coney Barrett. The Supreme Court agreed to expedited review with oral arguments scheduled for Nov. 2025.

Congress passed IEEPA in 1977 to limit presidential emergency powers after Nixon imposed wage and price controls without Congressional approval. The law grants presidents authority to freeze assets and block transactions during national emergencies, but the Federal Circuit held it never explicitly authorized sweeping tariff programs like Trump's Liberation Day duties.

The case V.O.S. Selections v. Trump consolidated lawsuits from 12 Democratic state attorneys general (led by 🌲Oregon) and five small businesses represented by the Liberty Justice Center. They argued Trump's tariffs violated the Constitution's grant of trade authority to Congress, not the president. The Court of International Trade ruled unanimously in May 2025 that Trump exceeded his authority, a decision the Federal Circuit upheld 7-4 in Aug..