Major legal setback for Donald Trump: a large part of his customs duties ruled illegal by a federal appeals court

A US federal appeals court ruled on Friday, August 29, 2025, that many of the tariffs imposed by Donald Trump were illegal .

As enforcement of the judgment has been suspended until October 14, the disputed customs duties remain in place for the time being .

"ALL CUSTOMS TARIFFS ARE STILL IN EFFECT!" the US president quickly responded in a message on his Truth Social network.

"Now, with the help of the United States Supreme Court, we will use them in the service of our country," the president added.

Donald Trump thus announced that he would refer the matter to the Court , whose conservative majority he had cemented, to settle the dispute in the last instance. This intention was confirmed a little later by his Minister of Justice, Pam Bondi, on X.

Friday's ruling, issued by a majority of seven judges against four, weakens the protectionist offensive of the head of state, who had publicly expressed his fears of this possibility at the beginning of the month.

No power to tax

Since returning to power in January, Donald Trump has introduced new tariffs on products entering the United States in several waves. These range from 10 to 50% depending on the situation and the country .

It is these customs duties - different from those affecting specific sectors (automobile, steel, aluminium, copper) - which are at the heart of the legal conflict.

According to the text of the judgment, "the law grants the president broad powers to take a number of actions in response to a declared national emergency, but none of these actions explicitly includes the power to impose customs duties and other taxes," a prerogative of Congress.

The judges consider that the head of state cannot impose indiscriminate customs duties on his own .

However, it is written, those which have been put in place "apply to almost all articles imported into the United States" , almost regardless of their origin and "without time limit".

The case was first examined by the United States International Trade Court (ITC), which ruled at the end of May that Donald Trump had exceeded his powers by imposing untargeted surcharges.

"Embarrassing"

In his message on Truth Social, the American president claims that Friday's decision was made by "highly politicized" judges, in other words, hostile to his government.

According to him, if the customs duties were to be withdrawn, "it would be a complete catastrophe for the country", which would be "destroyed".

At the beginning of August, he said he feared having to "repay (enormous) amounts", while the American executive boasts of raking in tens of billions of dollars in additional revenue .

The government also fears losing a major lever of pressure on its trading partners. Fears of exorbitant tariffs have prompted many of them, including the European Union, to refrain from retaliating and to further open their markets to American products.

"Such a decision would threaten the overall strategic interests of the United States both domestically and internationally, and would likely lead to retaliation and the cancellation of agreements with foreign trading partners," warned Commerce Secretary Howard Lutnick, according to documents submitted to the court and seen by AFP.

His colleague at the Treasury, Scott Bessent, had estimated that a suspension of customs duties would place the United States in an "embarrassing and dangerous situation diplomatically".

Democratic California Governor Gavin Newsom quipped after the decision Friday, saying that "Trump is the biggest loser in America." He also lamented that Americans "are the ones who suffer from his failed economic policies."