A federal appeals court just gutted President Donald Trump’s bold tariff strategy, ruling most of his global levies illegal. The decision, handed down Friday, clips the wings of a key MAGA economic tool, sparking fierce debate over presidential power. It’s a punch to the gut for those who saw tariffs as a shield for American workers.
CNBC reported that in a 7-4 ruling, the U.S. Court of Appeals for the Federal Circuit declared Trump overstepped his authority under the International Emergency Economic Powers Act (IEEPA).
This case, V.O.S. Selections v. Trump, consolidates lawsuits from a dozen states and five small businesses, all challenging Trump’s sweeping tariffs. The court’s pause until October 14 gives the administration a narrow window to appeal to the Supreme Court.
The saga began when the U.S. Court of International Trade rejected Trump’s IEEPA-based tariffs in May. Those included “reciprocal” tariffs on nearly all countries and specific levies on Canada, Mexico, and China tied to fentanyl trafficking. The Federal Circuit’s initial pause kept the tariffs in place during Trump’s appeal, but Friday’s ruling flipped the script.
Court Reins in Presidential Power
“The core Congressional power to impose taxes such as tariffs is vested exclusively in the legislative branch by the Constitution,” the court declared.
That line draws a hard boundary, reminding everyone that Congress, not the president, holds the purse strings. For conservatives, it’s a bittersweet nod to checks and balances, even if it stings.
Trump didn’t mince words, calling the court “highly partisan” on Truth Social. “If these tariffs ever went away, it would be a total disaster for the country,” he posted. His defiance resonates with supporters who see tariffs as a bulwark against globalist trade policies, but the court’s ruling suggests his approach may have overreached.
The tariffs in question, including the Trafficking and Reciprocal Tariffs, were massive in scope, targeting nearly all imports with high, fluctuating rates.
The court criticized their lack of limits, noting they applied to almost every country with no set duration. This unbounded approach, the majority argued, strayed far beyond what IEEPA allows.
“These tariffs apply to nearly all articles imported into the United States,” the majority ruled, slamming their ever-changing rates. Such broad strokes, they said, violate the structured tariff system Congress designed. It’s a technical jab that hits hard at the heart of Trump’s trade vision.
Four dissenting judges pushed back, arguing the plaintiffs didn’t fully justify their case for summary judgment. Their stance hints at a deeper divide over how much leeway a president should have in a crisis. For MAGA loyalists, it’s a glimmer of hope that the Supreme Court might see things differently.
Commerce Secretary Howard Lutnick warned that striking down these tariffs would “cause massive and irreparable harm” to U.S. interests.
He argued they’re vital for national security and ongoing trade negotiations. But the court’s skepticism, evident during July’s oral arguments, suggests his plea fell on deaf ears.
Constitutional Limits Take Center Stage
“Tariffs are a core Congressional power,” the court reiterated, doubling down on constitutional principles. This ruling isn’t just about trade—it’s a loud reminder that no president, even one fighting for American jobs, can sidestep Congress. Conservatives might grit their teeth, but the separation of powers is a bedrock they cherish.
Attorney Jeffrey Schwab celebrated, stating, “This decision protects American businesses and consumers from the uncertainty and harm caused by these unlawful tariffs.”
His victory lap feels like a jab at Trump’s base, who view tariffs as a shield against unfair trade. Yet, small businesses caught in the crossfire likely welcome the relief.
Schwab’s co-counsel, Neal Katyal, called the ruling a “powerful reaffirmation” of the rule of law. That’s a lofty claim, but it sidesteps the economic pain many Americans feel from global competition. The court’s focus on legality over practicality might not sit well with heartland voters.
“If allowed to stand, this Decision would literally destroy the United States of America,” Trump warned on Truth Social. His apocalyptic tone rallies supporters but risks alienating moderates who question his legal strategy. The hyperbole, though, underscores the stakes for his economic agenda.
White House spokesman Kush Desai remained defiant, saying, “The President’s tariffs remain in effect, and we look forward to ultimate victory on this matter.”
It’s a bold front, but with the clock ticking toward October 14, the Supreme Court looms as the next battleground. Conservatives hope for a reversal that restores Trump’s leverage.
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Author: Sophia Turner
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