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Trump Tariffs: In a major blow to US President Donald Trump, the US Supreme Court could potentially strike down the heavy tariffs imposed by his administration on exports from several countries including India, after an appeals court ruled that the president exceeded his authority under the International Emergency Economic Powers Act (IEEPA).
According to media reports, the US Supreme Court is likely to take up the case in the second half of October to decide whether Trump’s imposition of tariffs under the IEEPA is valid.
On Friday, the US Court of Appeals for the Federal Circuit upheld a May 28 ruling by the US Court of International Trade that initially struck down the tariffs. In its 7-4 decision, the appeals court ruled that Trump has overstepped his authority under the International Emergency Economic Powers Act (IEEPA).
The Trump administration is expected file an appeal against the ruling in the apex court, which will then decide whether the invocation of IEEPA is valid.
Earlier, Donald Trump had invoked the IEEPA, a 1977 law crafted for sanctions and financial controls in times of foreign emergencies, to impose reciprocal tariffs on dozens of countries.
Meanwhile, Trump tariffs imposed on imports from various countries, including India, will until October 14, giving the Trump administration time to seek a Supreme Court review. In a note, the Global Trade Research Initiative (GTRI), explained the consequences of Friday’s judgement, asserting that the court battle will “shape the future of world trade”.
“The US court battle will shape the future of world trade. The US supreme court will decide whether tariffs will remain a matter of Congressional lawmaking, or an instrument of presidential geopolitics,” it observed.
The GTRI noted that IEEPA grants the US President broad powers to regulate transactions and block property, but does not mention tariffs or taxation. “Trump invoked it in 2019 and again in 2025, declaring the U.S. trade deficit and alleged fentanyl inflows from China, Canada, and Mexico as national emergencies to justify sweeping duties,” it said.
Notably, the appeals court ruled that the US Congress, not the President, holds tariff authority, and also reasserted the principle that executive emergency powers cannot override Congress’s core trade and taxation authority.
The court ruling came as multiple lawsuits were filed in various states across the US by businesses, challenging the Trump tariffs.
“The Supreme Court, expected to take up the case in the second half of October, will now decide whether Trump’s expansive reading of IEEPA survives–or whether Congress’s limits on presidential trade powers are restored,” GTRI noted.
Pam Bondi, the 87th Attorney General serving under Donald Trump, wrote on X, supporting the US administration’s tariff strategy, stating that President Trump found a national emergency and took action under the law by imposing tariffs.
“The judges of the Federal Circuit are interfering with the President’s vital and constitutionally central role in foreign policy. This decision is wrong and undermines the United States on the world stage. The Justice Dept will appeal this decision and continue to fight to restore the president’s lawful authority,” Bondi wrote.
Earlier this month, Donald Trump signed an executive order imposing an additional 25 percent tariffs on Indian goods, raising the total levy to 50%. The US President called the additional tariffs on India as a “punishment” for purchasing Russian oil and weapons, as he accused New Delhi of “funding” Moscow’s war on Ukraine.
Trump’s additional 25% tariffs on India came into effect on Wednesday (August 27).
(With inputs from agencies)
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