US Court of Appeals rules Trump’s tariffs unconstitutional but keeps them in place

A US Court of Appeals has ruled that former President Donald Trump’s tariffs are unconstitutional, but they will remain in effect for the time being.

The court determined that the president did not have the legal authority to declare national emergencies and impose import taxes on goods from nearly every country, largely upholding a prior decision by a specialised federal trade court, Caliber.Az reports via British media.

However, the court partially overturned the earlier ruling that would have immediately cancelled the tariffs, giving the Trump administration time to appeal to the US Supreme Court.

Donald Trump responded on Truth Social, emphasising that “ALL TARIFFS ARE STILL IN EFFECT” and criticised the “highly partisan” court for suggesting that the tariffs be removed.

The decision could limit the speed and scope of Trump’s trade actions, though alternative legal avenues for imposing import taxes remain available.

Trump’s tariffs, which reversed decades of US trade policy, fueled concerns about higher consumer prices and slower economic growth, while shaking global markets. At the same time, the tariffs strained relations with US allies, as Trump used them to pressure the European Union, Japan, and other trading partners into accepting one-sided agreements.

Ashley Akers, senior counsel at Holland & Knight and a former Justice Department trial lawyer, noted prior to the appeals court decision that a legal defeat could undermine the administration’s trade leverage: “While existing trade deals may not automatically unravel, the administration could lose a pillar of its negotiating strategy, which may embolden foreign governments to resist future demands, delay implementation of prior commitments, or even seek to renegotiate terms. A ruling against the tariffs would represent not just a legal defeat, but a serious blow to the administration’s coercive trade diplomacy model.”

If the tariffs were ultimately revoked, the US government could be forced to refund import taxes already collected, potentially delivering a major financial hit to the Treasury. By July, the government had collected $142 billion in tariff revenue—more than double the amount at the same point in the previous year. The Justice Department warned in legal filings that revoking the tariffs could lead to “financial ruin” for the country.

Trump reiterated his concern on Truth Social, stating that eliminating the tariffs would make the US “financially weak” and emphasising the need for economic strength.

By Tamilla Hasanova