Tariff decision and emergency, Trump Administration will appeal as soon as Wednesday

on September 02, 2025

The U.S. Court of Appeals for the Federal Circuit ruled 7-4 on Friday that Trump went too far when he declared the United States' longstanding trade deficits "a national emergency” and cited the 1977 International Emergency Economic Powers Act to justify imposing sweeping import taxes on countries. Trump initially announced the new tariff rates on what he deemed “Liberation Day” in April but subsequently paused them from taking effect for months before unveiling and imposing updated figures.

The ruling was a major blow for Trump, who has made tariffs a key part of his economic agenda, even as the uncertainty around them has muddled markets.

The appeals court ruling largely upheld a decision in May by a specialized federal trade court in New York striking down the legal basis. Friday’s ruling, however, allows the tariffs to stay in place until Oct. 14, giving Trump’s team time to appeal to the Supreme Court. Conservatives have a 6-3 majority on the high court, with Trump himself having appointed three justices.

While speaking about his intent to take the issue to the highest court in the land on Tuesday, Trump noted that the stock market was “down today,” which he claimed was due to Friday’s tariff ruling.

Trump and top White House economic officials have warned about severe consequences if tariffs are not allowed to continue, including the disappearance of tariff revenues.

"If that decision would be lost it would be an economic disaster for the United States," Trump said on Tuesday.

"Our country will be weak, pathetic and not rich" if the tariffs are reversed, Trump said, adding that the levies have acted as leverage in negotiated peace deals.