A US appeals court has ruled that most of the tariffs introduced by former President Donald Trump are illegal, opening the door to a possible legal battle in the Supreme Court that could reshape American trade policy.
According to BBC News, the US Court of Appeals for the Federal Circuit struck down Trump’s broad use of tariffs, saying they were “invalid as contrary to law.”
In a 7-4 decision, judges said Trump went beyond his powers when he used emergency laws to justify taxes on imports from countries including China, Canada, and Mexico.
What are tariffs and why do they matter?
A tariff is a tax that a government places on goods coming into the country from abroad.
For example, if a US company imports steel from China, a tariff makes that steel more expensive.
Governments sometimes use tariffs to protect local industries by making foreign goods less competitive. But tariffs can also raise prices for ordinary consumers.
Trump introduced sweeping tariffs during his presidency, arguing that they were needed to correct what he called “unfair trade” and to protect American jobs.
He even declared a “national emergency on trade” to justify the measures under the International Emergency Economic Powers Act (IEEPA).
Why the court ruled against Trump
The appeals court said the law Trump used does not give the president the right to impose tariffs.
The judges explained that only Congress, the US law-making body, has the constitutional power to set tariffs and taxes.
In their ruling, the judges wrote:
“Whenever Congress intends to delegate to the President the authority to impose tariffs, it does so explicitly… The IEEPA neither mentions tariffs nor contains clear limits on presidential power in this area.”
The ruling will not take effect until 14 October 2025, giving the Trump administration time to ask the Supreme Court to review the case.
Trump’s reaction
Trump reacted angrily on his social media platform, Truth Social, calling the decision “highly partisan.”
“If these tariffs ever went away, it would be a total disaster for the country. It would make us financially weak, and we have to be strong,” he warned.
Impact on trade and South Africa
The decision comes at a sensitive time. On Wednesday, 6 August 2025, Trump and South African President Cyril Ramaphosa held a phone meeting to discuss trade issues.
Just two days later, new tariffs signed by Trump took effect on Friday, 8 August 2025.
The new policy includes a 30% tariff on certain South African imports into the US. This means American companies will pay more to buy South African goods, which could make them less competitive.
Economists warn that this may slow South Africa’s economic growth by around 0.2%.
Although some industries, such as pharmaceuticals and minerals, are exempt, sectors like agriculture and manufacturing could suffer.
Nedbank has also warned that US-linked retail chains in South Africa, including McDonald’s, Burger King, and Starbucks, may face rising costs, which could affect prices for consumers.
What happens next
The case is expected to reach the US Supreme Court, which will decide whether Trump’s tariffs represent a lawful use of presidential power or an overreach. If the Supreme Court upholds the ruling, many of Trump’s trade measures could be undone.
For South Africa and other countries, the uncertainty means businesses will need to prepare for sudden changes in trade rules that could affect prices, jobs, and economic growth.