A major U.S. appeals court ruling has struck down large portions of President Donald Trump’s tariff regime, declaring that his use of emergency powers to impose import taxes exceeded constitutional limits. However, enforcement of the ruling has been postponed until October, leaving tariffs in place for now and prolonging uncertainty across global supply chains.
At the heart of the decision is the International Emergency Economic Powers Act (IEEPA). The Federal Circuit court determined that IEEPA does not authorize tariffs of the magnitude Trump imposed, noting that the authority to levy taxes—including tariffs—rests firmly with Congress.
In its majority opinion, the court stressed that Congress did not use terms such as “tariff,” “duty,” or “tax” when drafting IEEPA. By contrast, other trade laws explicitly provide the president with tariff authority under defined limits. The absence of such language, judges argued, meant Trump lacked the clear authorization needed to impose broad tariffs through emergency powers.
Despite the ruling, the tariffs remain active until at least October while the administration considers an appeal to the Supreme Court. This interim period gives both policymakers and businesses little clarity on what lies ahead, creating operational and sourcing challenges for supply chain managers.
Trump, who has described tariffs as a cornerstone of his economic agenda, immediately defended them as vital to national security and U.S. manufacturing. Senior officials from the Treasury and Commerce departments echoed this sentiment, warning that suspending the tariffs could derail negotiations with key partners like the European Union, United Kingdom, and Japan.
The ruling highlights three critical issues for logistics and trade professionals:
For logistics providers and shippers, this environment reinforces the need for flexible sourcing strategies, diversified supplier bases, and real-time tariff intelligence to anticipate changes that could reshape trade flows overnight.
The case is far from resolved. The appeals court has sent aspects of the dispute back to lower courts while leaving room for Supreme Court review. A final resolution could redefine the scope of U.S. presidential power in trade policy—an outcome with lasting implications for importers, exporters, and global logistics networks.
Until then, October marks a key inflection point. Logistics professionals should prepare for multiple scenarios: continued tariffs, partial rollbacks, or further escalation if the administration seeks alternative trade levers.
Source:https://edition.cnn.com/2025/08/29/business/trump-tariffs-appeals-court-ruling
