A federal appeals court in Washington has struck down most of former President Donald Trump's tariffs, declaring they were imposed outside the authority granted under federal law. The ruling adds a new layer of uncertainty to U.S. trade policy, with major implications for manufacturers, farmers, and the broader rural economy.

In a 7-4 decision, the U.S. Court of Appeals for the Federal Circuit affirmed that the "Trafficking and Reciprocal Tariffs" imposed under Trump's executive orders exceeded the powers delegated to the president under the International Emergency Economic Powers Act (IEEPA). The court also upheld a declaratory ruling that the tariffs were "invalid as contrary to law."

Tariffs Remain in Place - for Now

Despite the ruling, the appeals court allowed the tariffs to remain in effect through October 14, giving the administration time to seek an emergency appeal before the U.S. Supreme Court.

On Truth Social, Trump criticized the decision, saying:

"Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end. If these Tariffs ever went away, it would be a total disaster for the Country."

Trump argued tariffs are a key pillar of his economic agenda, designed to reduce trade deficits, defend U.S. manufacturers and farmers, and compel foreign concessions.

White House Defends Tariff Strategy

The White House vowed to continue the fight. Spokesman Kush Desai told reporters:

"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."

The administration points to $142 billion in tariff revenue collected by July 2025, more than double the same point a year earlier.

Legal Basis Under Scrutiny

At the center of the dispute is Trump's use of the International Emergency Economic Powers Act (IEEPA) - a 1977 law meant to address national security and economic crises - to justify sweeping tariffs. The Trump team argued past precedent supported this approach, citing President Richard Nixon's 1971 emergency use of tariffs during a monetary crisis.

Trump invoked IEEPA at his "Liberation Day" event on April 2, 2025, framing tariffs as essential to economic sovereignty.

Farmers, manufacturers, and global trading partners now face a period of deep uncertainty. Tariffs have reshaped commodity prices, farm input costs, and international demand for U.S. crops. The ruling could reshape trade negotiations if the Supreme Court ultimately strikes down the policy.

Trump, however, remained defiant, writing:

"At the start of this Labor Day weekend, we should all remember that TARIFFS are the best tool to help our Workers, and support Companies that produce great MADE IN AMERICA products. ... With the help of the United States Supreme Court, we will use them to the benefit of our Nation, and Make America Rich, Strong, and Powerful Again!"

The case now moves closer to the U.S. Supreme Court, setting the stage for a landmark battle over presidential authority in trade policy. Until then, tariffs remain in place - and the debate over their economic impact on farmers, rural economies, and global markets continues.