1 September 2025 - Special Market Update - U.S. Court of Appeals Concludes Most Trump Tariff Decisions Exceeded His Authority

This is a B2B Cambodia Special Market Update on 1 September 2025, Anthony Galliano, Group CEO of Cambodian Investment Management(CIM), breaks down in more details the U.S. Court of Appeals for the Federal Circuit, which in a 7–4 decision, concluded that most of President Donald Trump’s sweeping tariffs exceeded his authority under the International Emergency Economic Powers Act and thus are unlawful.  These include the "Liberation Day" tariffs, the 10 per cent baseline tariffs applied broadly, as well as “reciprocal” tariffs.

Watch the video in English above.

• The U.S. Court of Appeals for the Federal Circuit, in a 7–4 decision, concluded that most of President Donald Trump’s sweeping tariffs exceeded his authority under the International Emergency Economic Powers Act and thus are unlawful.  These include the "Liberation Day" tariffs, the 10% baseline tariffs applied broadly, as well as “reciprocal” tariffs.  
• Certain tariffs remain unaffected, such as those on steel, aluminum, copper, or others imposed under different statutes, like Section 232 of the Trade Expansion Act.  The court ruled that International Emergency Economic Powers Act does not authorize the president to impose tariffs of general application. Instead, Congress retains the constitutional power to levy duties and taxes.  By stretching International Emergency Economic Powers Act beyond its intended scope, the tariffs became an unlawful use of emergency authority.
• The U.S. Constitution gives Congress, not the President, the power to regulate foreign commerce and set tariffs.  While Congress can delegate some trade authority to the president in specific statutes, like Section 232 of the Trade Expansion Act, the judges concluded that Trump’s “Liberation Day” tariffs and “reciprocal” tariffs went far beyond any such delegation.  
• The court majority stressed that executive power has limits, and Trump’s tariffs encroached on congressional prerogatives. Trump’s team argued that the tariffs were needed for national security and economic leverage.  The court rejected this, saying the administration failed to show a genuine emergency under the International Emergency Economic Powers Act that justified blanket tariffs on allies and rivals alike.  Judges noted that using tariffs as a bargaining tool is not the same as responding to an actual emergency.
• The court paused enforcement of its ruling, allowing the tariffs to stay in effect until October 14, 2025, providing the Trump administration time to appeal to the Supreme Court. The administration has vowed to appeal and insists the tariffs are essential for national security and economic stability, calling the ruling a disaster.  
• President Trump commented that “Our country would be completely destroyed without tariffs” calling the ruling  “total disaster for the country.” and arguing that if courts strike down his tariffs, the United States would face catastrophic consequences.  He vowed to take the fight to the U.S. Supreme Court, aiming to preserve his tariff measures as tools for national defense and economic strategy.