The US Appeals Court ruled that most Trump-era tariffs are illegal but allowed them to remain in place until 14 October pending a possible Supreme Court appeal. Despite the ruling, the administration continues trade talks with other countries.
The US appeals court ruled, on 29 August 2025, that most of the tariffs imposed by the Trump administration are illegal, but allowed them to remain in place until 14 October to give the administration time to appeal to the Supreme Court.
This decision could lead to a significant Supreme Court showdown over President Donald Trump’s economic policies. Tariffs have been a cornerstone of the Trump administration’s foreign policy, used to pressure trading partners and renegotiate trade deals, though they have also caused financial market volatility.
The ruling affects Trump’s so-called “reciprocal” tariffs, which are applied to most countries globally, as well as additional tariffs imposed on China, Mexico, and Canada.
Trump criticised the ruling by what he described as a “highly partisan” court, expressing his concerns on Truth Social.
“ALL TARIFFS ARE STILL IN EFFECT! Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end. If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak, and we have to be strong. The U.S.A. will no longer tolerate enormous Trade Deficits and unfair Tariffs and Non Tariff Trade Barriers imposed by other Countries, friend or foe, that undermine our Manufacturers, Farmers, and everyone else. If allowed to stand, this Decision would literally destroy the United States of America,” Trump posted on Truth Social.
Despite this, he remained optimistic about a reversal, stating that he believed the tariffs would ultimately benefit the nation.
“With the help of the United States Supreme Court, we will use them to the benefit of our Nation, and Make America Rich, Strong, and Powerful Again!”, Trump posted.
However, the court’s ruling on 29 August does not affect tariffs imposed under other legal authorities, including those on steel and aluminium imports introduced during Trump’s administration.
Trump defended both sets of tariffs, along with more recent ones, by invoking the International Emergency Economic Powers Act (IEEPA). This act grants the president authority to tackle “unusual and extraordinary” threats during declared national emergencies.
USTR to advance trade deals with other countries despite court ruling
USTR (United States Trade Representative) is continuing trade talks with other countries despite a US appeals Court ruling that deemed most of President Trump’s tariffs illegal, according to US Trade Representative Jamieson Greer. However, Greer did not specify the countries involved.
Trade experts noted that the administration had anticipated the decision and is exploring alternatives, including using Section 338 of a 1930 trade law, which allows for the imposition of duties of up to 50% on imports from countries that discriminate against US commerce.
Earlier, on 29 May 2025, the US Court of International Trade in New York ruled that former President Trump had exceeded his authority in imposing certain tariffs.
Similarly, a Washington court determined that the International Emergency Economic Powers Act (IEEPA) does not permit Trump’s tariffs, a decision the government has appealed. At least eight lawsuits, including one filed in California, have been brought to challenge Trump’s tariff policies.
