Court Strikes Down Key Trump Tariffs: What the Ruling Means for Businesses
- Schulz Trade Law
- Aug 31
- 2 min read
Updated: Sep 6
Court Strikes Down Key Trump Tariffs:
What the Ruling Means for Businesses
September 1, 2025
Trade attorney Michelle Schulz explains how a federal appeals court decision could reshape the scope of presidential tariff powers and impact U.S. businesses.
A Landmark Appeals Court Decision
On August 29, 2025, the U.S. Court of Appeals for the Federal Circuit issued a pivotal 7–4 ruling invalidating most of President Trump’s “reciprocal” and fentanyl-related tariffs. The court found that these measures exceeded presidential authority under the International Emergency Economic Powers Act (IEEPA).
Michelle Schulz, Founder and Managing Partner of Schulz Trade Law, noted:
“The statute that was being used did not authorize tariffs this broad and this unlimited.”
The decision highlights that while presidents hold tariff powers under other statutes, the IEEPA was not designed to justify sweeping, open-ended trade measures.
The Limits of Presidential Authority
The court’s opinion underscores a critical legal distinction: emergency statutes like the IEEPA cannot be stretched to impose broad, indefinite tariffs. Schulz explained:
“The law itself is clear that it is an emergency measure… to provide tariffs with no limits and no end date in sight, it’s just too broad.”
Other tariff authorities remain intact. Section 232 (national security) and Section 301 (unfair trade practices) continue to provide presidents with wide leeway, supporting existing tariffs on steel, aluminum, and unfair trade practices against China. But when it comes to emergency powers, the court’s ruling reins in presidential overreach and places responsibility back on Congress.
What Comes Next for Tariffs and Businesses
The case could return to the Court of International Trade to determine how relief will be applied—or even reach the Supreme Court. Importantly, relief may be limited to plaintiffs in the case, such as specific companies and the state of Oregon, rather than a nationwide rollback.
Schulz emphasized the uncertainty:
“It’s possible that this case will be remanded… to decide how to provide relief. It may also go to the Supreme Court.”
For businesses, this means preparing for a shifting trade environment. While some tariffs may fall away for plaintiffs, others remain in place under different authorities. The legal battle is far from over.
Navigating tariff uncertainty requires expert guidance.
Whether your business is an importer, manufacturer, or retailer, Schulz Trade Law can help you anticipate changes and develop strategies to protect your bottom line.
👉 Contact Schulz Trade Law at schulztradelaw.com for expert advice on:
Managing duty costs
Navigating compliance challenges
Building resilient trade strategies for the months ahead
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