Trump’s Tariff Policies Face Legal and Global Backlash
U.S. Appeals Court Declares Most Trump Tariffs Illegal
Court Ruling Questions Presidential Trade Authority
A U.S. federal appeals court has ruled that most of Donald Trump’s tariffs, which were imposed using emergency powers, are unlawful under the International Emergency Economic Powers Act (IEEPA). The 7–4 decision questions Trump’s reliance on national security justifications to impose sweeping tariffs.
Despite the decision, the court has allowed the tariffs to remain in effect until October 14, giving time for a potential appeal to the U.S. Supreme Court.
Legal Doctrine at the Center: “Major Questions”
The court’s reasoning was rooted in the “Major Questions Doctrine,” which requires that Congress—not the president—authorize decisions with broad economic impact. Judges ruled that Trump’s tariff decisions lacked clear legislative backing and were an overreach of executive power.
Trump’s Reaction: “Disaster for the Country”
Former President Trump strongly criticized the ruling, calling it a “total disaster for the country” and promising to appeal. He defended the tariffs as part of his broader economic nationalism strategy, saying they helped protect American workers and industries.
Economic Shockwaves and International Reactions
India Hit Hard by New U.S. Tariffs
The Trump administration recently doubled U.S. tariffs on Indian exports—from 25% to 50%—in response to India’s oil trade with Russia. This affects over 70% of Indian exports to the U.S., especially in textiles, apparel, and steel.
Indian factories in Tirupur, Noida, and Surat have already started slowing production. Major Indian business leaders and influencers, such as Baba Ramdev, have called for boycotts of U.S. brands like Pepsi, McDonald’s, and KFC, labeling the tariffs “economic hooliganism.”
Broader Global Trade Tensions Escalate
Other nations are also feeling the heat:
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Canada and Mexico face ongoing U.S. tariffs of 25% on most goods and 10% on Canadian energy.
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In April 2025, Trump launched 10% baseline tariffs on all U.S. imports, which he claimed would “liberate” the American economy from foreign manipulation.
This led to global market turmoil, with significant declines in the S&P 500 and a major hit to global investor confidence.
Developments on Trump Tariffs (August 2025)
| Topic | Details |
|---|---|
| Court Ruling | 7–4 verdict says most Trump tariffs are illegal under IEEPA |
| Tariffs Still in Effect | Stay granted until October 14 pending possible Supreme Court appeal |
| Trump’s Response | Denounced the ruling; vowed to fight it |
| Impact on India | 50% tariffs on key exports; economic backlash and boycott calls |
| Other Global Tariffs | Canada, Mexico also affected; global 10% import tax introduced in April |
| Market Reaction | Volatility spikes; fear of trade wars and supply chain disruptions |
What This Means for Trade, Law, and Politics
Major Takeaways
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Legal Check on Executive Power: The court emphasized that presidents cannot impose broad economic policies without Congressional approval.
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Market Volatility: Businesses face uncertainty as courts and governments clash over trade rules.
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Global Trade Wars Escalate: Allies like India, Canada, and Mexico now face rising tariffs and political strain.
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Supreme Court Showdown Ahead: A Trump appeal could set precedent on presidential trade powers.
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Rising Prices for Consumers: Tariffs continue to drive inflation in the U.S. and partner economies.
Final Thoughts: Tariffs, Power, and Global Strategy
The current legal ruling against Trump’s tariffs isn’t just a technical setback—it’s a constitutional moment. It challenges the balance of power between the executive and legislative branches, and it raises the question of how far a president can go in using trade as a foreign policy weapon.
Meanwhile, on the global stage, the U.S. is seeing increasing pushback. India’s response highlights how tariffs are damaging long-standing partnerships, and growing protectionism may reshape global alliances.
