Appeals Court Reaffirms Previous Decision

Last week, a powerful federal appeals court issued a 7–4 decision declaring that most of former President Trump’s sweeping tariffs, imposed under emergency powers, were unlawful and beyond his authority. The ruling reaffirms an earlier judgment by the Court of International Trade and sends a clear message: only Congress, not the president, has the power to impose broad tariffs.

The President has the authority to implement tariffs only in the interests of national security, which is hard to justify a national security threat when the tariffs are globally implemented.

Although the tariffs remain in place until mid-October, 2025, the legal precedent appears to be set.

Why This Is Good for Global Trade & Businesses?

Lower Costs & Predictability

These tariffs account for up to 70% of U.S. tariff revenue. If struck down, importers may see significant refunds, and clearer future cost prices now that they won’t be subject to ever changing tariffs.

Boost to Supply Chain Planning

Should this go through, it will stop Trump from implementing many future tariffs which will provide stability and certainty with them.
With decreased likelihood of surprise sweeping tariffs, companies can streamline sourcing much more efficiently. This should stimulate economic growth over the coming months.

What’s Next? Key Remaining Tariffs

Not all tariffs are affected by this ruling:

Steel, aluminum, and sector-specific duties remain intact under separate statutes (like Section 232 or 201) and are not part of this court’s decision. It is unclear whether Trump can raise these tariffs higher to compensate, so that will remain to be seen.

There is also the potential for businesses to be refunded on the tariffs they paid during the time they were in effect.

For importers navigating uncertainties, we offer not just sourcing support—but a full-service partner to capitalize on the maximum benefits of sourcing from overseas.

If you would like to kickstart the holiday season fully with the new tariff development, contact us now. We expect things to get busy before December, so starting early is always an advantageous move in both cost and time.