WASHINGTON – A United States federal appeals court ruled on Friday that many of U.S President Donald Trump’s tariffs are illegal — but it allowed for the levies to remain in place as the case likely makes its way to the Supreme Court.
The United States Court of Appeals for the Federal Circuit found that Trump’s “Liberation Day” tariffs and his fentanyl-related duties exceeded the powers of the national security statute he used to impose the levies.
Trump used the International Economic Emergency Powers Act of 1977 to hit nearly every country with tariffs. The act, usually referred to by the acronym IEEPA, is a national security statute that gives the U.S. president authority to control economic transactions after declaring an emergency.
IEEPA doesn’t mention the word “tariff” and the U.S. Constitution gives power over taxes and tariffs to Congress.
The Liberty Justice Center, which represented some of the businesses fighting the duties, said the president cannot impose tariffs on his own.
“The president cannot impose tariffs on his own, and IEEPA does not give him unlimited, unilateral tariff authority,” the centre said in a post on social media.
The centre said the decision protects American businesses and consumers from the uncertainty and harms the unlawful tariffs have caused.
The president in a social media post said “ALL TARIFFS ARE STILL IN EFFECT!” and called the court “highly partisan.”
“If these Tariffs ever went away, it would be a total disaster for the Country,” Trump said in a post soon after the decision came down. “It would make us financially weak, and we have to be strong.”
White House spokesman Kush Desai said in a statement to The Canadian Press that “President Trump lawfully exercised the tariff powers granted to him by Congress to defend our national and economic security from foreign threats.”
“The President’s tariffs remain in effect, and we look forward to ultimate victory on this matter,” Desai said.
Trump hit Canada with economywide duties in March after he declared an emergency at the northern border related to the flow of fentanyl. He partially paused levies a few days later for imports that comply with the Canada-U.S.-Mexico Agreement on trade.
Trump increased the tariffs on Canada to 35 per cent at the start of August, with the White House citing fentanyl and retaliatory tariffs as justification for the increase.
U.S. government data shows a minuscule volume of fentanyl is seized at the northern border.
Trump took his trade war to the world in April with duties on nearly every country, saying America’s trade deficits amounted to a national emergency. A handful of countries have made agreements with the Trump administration but significant tariffs remain in place.
At least eight lawsuits are challenging the tariffs.
Canada is also being hit with tariffs on steel, aluminum, copper and automobiles. Trump used different powers under the Trade Expansion Act of 1962 to enact those duties.
This report by The Canadian Press was first published Aug. 29, 2025.
