WASHINGTON, DC: Just hours before a federal appeals court ruled most of President Donald Trump’s global tariffs illegal, his top cabinet secretaries filed urgent statements warning that striking them down would have grave diplomatic and economic consequences — a last-minute bid that failed to sway the judges, Bloomberg reported.
The US Court of Appeals for the Federal Circuit in Washington declared that Trump had overreached his authority under the International Emergency Economic Powers Act (IEEPA) by using it to levy duties. “The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax,” the court said.
The ruling invalidates Trump’s “reciprocal” tariffs announced in April and another set from February targeting China, Canada, and Mexico. It does not affect tariffs imposed under other legal frameworks, such as those on steel and aluminum.
Cabinet Scramble Before Ruling
In emergency filings, Treasury Secretary Scott Bessent warned the court of “dangerous diplomatic embarrassment” if tariffs were struck down, while Commerce Secretary Howard Lutnick said such a move would have “devastating and dire consequences.”
Lutnick argued that the tariffs had forced foreign powers to the negotiating table “in ways that no other president came close to achieving,” cautioning that undoing them would signal weakness to adversaries. Bessent added that suspending tariffs risked provoking retaliation from other countries “based on a perception that the United States lacks the capacity to respond rapidly.”
Secretary of State Marco Rubio warned of “severe consequences” for ongoing negotiations, including talks aimed at ending Russia’s war in Ukraine and addressing human rights abuses.
Judges Reject Sweeping Claims
During oral arguments in July, judges had already voiced skepticism over the administration’s sweeping view of tariff powers. On Thursday, they sided with lawsuits filed by small businesses and Democratic-led states, who argued that the Constitution reserves tariff authority for Congress.
The court said Trump’s invocation of national emergencies over trade deficits and drug trafficking to justify tariffs stretched IEEPA beyond its intent. “It seems unlikely that Congress intended, in enacting IEEPA, to depart from its past practice and grant the President unlimited authority to impose tariffs,” the ruling noted.
A lower court — the US Court of International Trade in New York — had earlier struck down the tariffs in May, also finding Trump had exceeded his powers.
What’s Next
Although the appeals court declared the tariffs unlawful, it has paused the effect of its ruling until October 14, giving the administration time to appeal to the Supreme Court.
For now, Trump’s tariffs remain in place, but the administration faces an uphill legal battle to preserve one of its most aggressive trade policies — and avoid the very diplomatic fallout it warned the court about.
