Appeals Court Rules Against Trump’s Ag and Other Tariffs

A federal appeals court has ruled that President Donald Trump does not have the authority to impose tariffs under the International Emergency Economic Powers Act. While the decision reaffirmed an earlier lower court ruling, the tariffs themselves remain in place for now.

The U.S. Court of Appeals for the Federal Circuit sided with the U.S. Court of International Trade, which had previously concluded that the president lacked statutory authority to impose tariffs under IEEPA.

The case centered on a series of executive orders issued in early 2025, including so-called “fentanyl tariffs” targeting imports from Canada, Mexico, and China, as well as broad “reciprocal tariffs” on nearly all U.S. trading partners. At their height, these tariffs reached levels as high as 145 percent on some Chinese goods and up to 50 percent on Indian imports.

Under the orders:

• Canadian goods faced tariffs up to 35 percent (10 percent on energy and potash).
• Mexican imports were hit with 25 percent tariffs (10 percent on potash).
• Chinese goods faced a 20 percent base tariff, set to rise further under reciprocal measures.

The court’s decision does not affect steel and aluminum tariffs imposed under a different national security statute, which remain in place.

Dave Salmonsen, senior director of government affairs for the American Farm Bureau Federation, explained, “It said the President doesn’t have authority under that international Emergency Economic Powers Act. He doesn’t have the authority to impose tariffs. Well, the Court of Appeals said, you know, the lower court was right, so they upheld the Court of International Trade and said no, no authority, Mr. President, to do tariffs under this statute.”

Tariffs remain in effect — for now

Despite the court’s ruling, the tariffs are not being lifted immediately. The appeals court left them in place to give the administration time to decide whether to appeal to the U.S. Supreme Court.

Salmonsen noted that the next step rests with the administration, “The tariffs continue, but administration, you have until October 14. That’s the latest date that you can petition the Supreme Court to hear a case, so we’re just gonna leave everything as it is. If you decide to take an appeal, then you go on. But for right now, even though we have this decision, nothing has changed on the tariff front.”

If the administration appeals, the case could stretch well into 2026 before a final outcome is reached.

“Say they decide to hear the case, it probably wouldn’t come up before them until sometime in the winter, and we might not have a decision till March, April, sometime into next year. So, this whole process, once you go to the Supreme Court, it takes time,” Salmonsen added.

For now, the tariffs continue to impact farmers, ranchers, and agribusinesses that rely on global trade. While the ruling limits presidential power under IEEPA, uncertainty remains until the administration decides whether to appeal and, ultimately, until the Supreme Court weighs in.