By Tobbias Mutunga
The Common Pulse | August 2025
The Ruling
The court found that Trump’s broad use of presidential power to impose tariffs under the banner of “reciprocity” went beyond what the Constitution allows. Judges emphasized that while the executive branch can enforce trade laws, it cannot unilaterally create or expand sweeping global tariff systems without explicit congressional approval.
Yet, citing concerns over immediate economic disruptions, the court decided that the tariffs would stay in place for now, giving Congress and the White House time to consider legislative fixes or appeals to the Supreme Court.
What Tariffs Are Affected?
The decision targets Trump’s much-publicized “reciprocal tariffs” program, under which the U.S. levied duties on dozens of countries, covering imports from steel and aluminum to high-tech goods and even consumer electronics. These tariffs were a cornerstone of Trump’s protectionist trade strategy, designed to pressure countries into lowering their own tariffs on American exports.
Why It Matters
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Economic ripple effects: Businesses have complained of higher costs, while some domestic industries (steel, agriculture) welcomed the protection. With the court ruling, uncertainty now hangs over global supply chains and U.S. trade policy.
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Political showdown: The decision fuels a new tug-of-war between the executive branch and Congress, which has constitutional authority over trade and taxation. Lawmakers will now face pressure to either codify or reject Trump’s tariff policies.
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Global reaction: Allies and rivals alike, from the EU to China, are watching closely. For many, Trump’s tariffs were already a flashpoint in trade negotiations. The ruling may embolden foreign governments to challenge U.S. measures at the World Trade Organization.
Trump’s Response
True to form, President Trump struck a defiant tone. He dismissed the ruling as “another bad decision by activist judges” and vowed to fight all the way to the Supreme Court. He insisted the tariffs are “saving American jobs” and “forcing other countries to play fair.”
What Happens Next?
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Appeal to the Supreme Court – Trump’s legal team is expected to file an appeal almost immediately.
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Congressional action – Lawmakers could attempt to pass legislation clarifying or expanding presidential authority over tariffs, though such efforts would spark heated partisan debate.
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Market reactions – Economists warn of volatility in the coming weeks as industries try to anticipate whether tariffs will hold or collapse under legal pressure.
This ruling is not just about tariffs, it’s about the balance of power between the presidency and Congress, and whether Trump’s brand of muscular, unilateral trade policy can survive constitutional scrutiny.
For now, U.S. consumers and businesses will continue to feel the bite of higher tariffs—but the ruling signals that change may be on the horizon.
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