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International trade

Federal Appellate Court Upholds Ruling Invalidating Trump's Global Tariffs

Strategic Insights

— 2 min read

A federal appellate court has reaffirmed a lower-court ruling that invalidated most of President Trump's global tariffs, potentially complicating his efforts to alter the global trade order. The ruling, which could have significant consequences for the US economy, follows a May ruling that stated Trump did not have the authority under the International Emergency Economic Powers Act (IEEPA) to impose tariffs. Trump has vowed to appeal to the Supreme Court, claiming the ruling would "literally destroy the United States of America."

Key Takeaways:

  • The appellate court upheld a 7-4 ruling that Trump's reasoning for imposing tariffs did not constitute an emergency, leaving the tariffs "unbounded in scope, amount, and duration."
  • The court held its ruling in abeyance until October 14, allowing either side to appeal to the Supreme Court.
  • Reciprocal tariffs, ranging from 10% to 50%, have been in effect since the beginning of the month.
  • The US and China have extended their separate tariff truce for 90 days, lowering US tariffs on Chinese goods to 30% and restarting the flow of rare earth minerals out of China.
  • Trump's 50% tariffs on India took effect on Wednesday, while tariffs on Canada were raised to 35%, and Mexico's 25% tariff rate was extended for 90 days.
  • Brazil was hit with 50% tariffs after Trump accused its government of "politically motivated persecution" against former President Jair Bolsonaro.
  • Many countries' tariffs were reset from rates originally imposed in April to a new level of 15%, scrapping a formula that economists said was based on errors.
  • The court ruling does not immediately affect Trump's decision to end the "de minimis" exemption for postal shipments to the US worth less than $800.

Statistics:

  • 133 billion parcels were sent to the US last year, with 60% coming from China.
  • The US and China have extended their tariff truce for 90 days, with US tariffs on Chinese goods lowered to 30%.
  • 50% tariffs were imposed on India on Wednesday, while 35% tariffs were levied on Canada.
  • 25% tariff rate was extended for 90 days on Mexico, and 50% tariffs were imposed on Brazil.

Sources:

  • Axios: "Trump issues threatening message on Truth Social about tariff ruling" (https://www.axios.com/2025/08/29/trump-tariff-ruling)
  • International Emergency Economic Powers Act (IEEPA)
  • Truth Social post by President Trump on Friday night (https://truthsocial.com/%40realDonaldTrump/posts/115114339832960282)
  • Axios: "Trump tariffs: Where they stand" (https://www.axios.com/economy/tariffs)
  • Axios: "Trump's 50% tariffs on India take effect" (https://www.axios.com/2025/08/27/trump-tariffs-india-russian-oil-purchase-modi)
  • Axios: "US and China extend tariff truce for 90 days" (https://www.axios.com/economy/tariffs)

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