Federal court strikes down Trump’s reciprocal tariffs, possible reprieve for India

August 30, 2025

A federal appeals court in Washington has called Trump’s tariff ‘illegal’.  Let us tell you that Trump after coming to power imposed tariffs on different countries across the world. The court endorsed the decision of the lower court and said that most of the import duties imposed by Trump are illegal. During this, the court also questioned the powers of the President to use this power.

Will the decision of the federal court affect most of the economies of the world?

It is worth noting that the Trump administration has imposed at least 10 percent tariff on its trade partners. At the same time, the rate of tariff imposed by the US on countries like India and Brazil has now become 50 percent. However, the decision of the US federal court has come as a relief for most of the economies of the world.

Why is the decision of the federal court against Trump’s tariff important?

The decision of the federal court is a big obstacle to Trump’s attempt to change the global trade structure, through which he was looking for an opportunity to raise maximum revenue by imposing tariffs on countries doing business with the US.

After the court’s decision, it is almost certain that the tariffs imposed by Trump will be stopped. However, the White House has said several times that it will challenge any decision against the tariffs in the Supreme Court.

Federal court on Trump’s tariff decision and the President’s powers?

⦁ The federal appellate court talked about the misuse of the powers given to the US President during an emergency. In a bench of 11 judges, 7 judges declared Trump’s decision to impose tariffs illegal, while the decisions of 4 judges were in disagreement.

⦁ In the majority decision, the court said, “Because we agree that the emergency law (International Emergency Economic Powers Act) gives the President the power to make rules on imports, but it does not give him the right to impose tariffs through executive orders.”

⦁ The court said, “The power to impose taxes and tariffs is constitutionally vested only in the legislative branch – Congress. The law that Trump used to impose his most sweeping tariffs does not actually give him the power to impose import duties.”

⦁ “When Congress drafted the IEEPA law, it did not include words like tariff, duty or tax. By not using such words, Congress clearly wanted to limit the unlimited power given to the President.”