Trump Suspends Reciprocal Tariffs Amid Court Challenges
#News Bureau,August 30,2025
A US federal appeals court has ruled that former President Donald Trump did not have the legal authority to impose broad tariffs on multiple countries. While the tariffs will remain in place for now, the verdict delivers a significant blow to Trump’s trade strategy. The key question now is: what will Trump do next, and what legal or political options are left on the table?
In a significant legal setback for former US President Donald Trump, a federal appeals court ruled on Friday that he did not have the legal authority to impose sweeping tariffs on nearly every country.
However, the court has allowed the existing tariffs to remain in place for now, giving Trump time to appeal the decision to the US Supreme Court.
Which Tariffs Were Challenged?
The court’s ruling centered on Trump’s April proclamation, in which he declared “Liberation Day” and announced a policy of “reciprocal tariffs.” Under this plan, he imposed tariffs of up to 50 percent on countries where the United States faced trade deficits. A standard 10 percent tariff was applied to most other trading partners. These measures built on earlier tariffs levied against China, Mexico, and Canada. The court found that these sweeping actions exceeded the president’s legal authority, raising serious concerns under both constitutional and trade law.This ruling upholds a May verdict from a special trade court in New York, which found that Trump had misused emergency powers under the Trade Expansion Act to implement his tariff policies.
Trump Suspends Reciprocal Tariffs Amid Legal Turmoil
President Trump has suspended reciprocal tariffs for 90 days. The move gives countries time to sign trade agreements and ease export barriers for U.S. goods.
Several nations, including the UK, Japan, and the EU, accepted one-sided deals to avoid penalties. However, Laos faced a 40% tariff and Algeria 30%, as punishment for resisting U.S. terms.
Emergency Powers Face Legal Pushback
Trump defended the tariffs by declaring a national emergency under the 1977 IEEPA. He claimed that America’s long-standing trade deficit was a national crisis. He also cited illegal immigration and drug trafficking from Mexico, Canada, and China as justification.
In May, a New York trade court rejected this defense. It ruled that Trump had misused emergency powers to impose his “Liberation Day” tariffs.
That decision was upheld in a 7–4 ruling by a federal appeals court. Judges said Congress never gave presidents unlimited authority over tariffs. However, dissenting judges argued that limited emergency use might be legal. This could give Trump a path to appeal to the Supreme Court.
What’s Next for Trump?
The administration warned that overturning the tariffs could cause massive financial damage. By July, tariff revenues topped $159 billion, more than double the previous year.
Officials said canceling the tariffs would require the U.S. Treasury to issue large refunds. The Justice Departmentwarned this could cause “financial catastrophe.”
Ashley Akers, a former DOJ trial attorney, said repealing the tariffs would hurt Trump’s trade strategy. She warned that foreign nations may challenge future U.S. demands or push for renegotiation.
Trump’s Remaining Options
Trump could use alternative trade laws, though they offer limited power. Under the 1974 Trade Act, he may impose 15% tariffs for up to 150 days to address trade deficits.
He also has the option to invoke Section 232 of the 1962 Trade Expansion Act. This law allows tariffs based on national security, but requires an investigation by the Commerce Department.
Despite the court’s ruling, Trump remains defiant. He posted on his social media platform, warning, “If this decision stands, it will destroy the United States.”
