Are Trump Tariffs Legal? Three Things to Know About the Supreme Court Case

If the constant news about tariffs feels overwhelming and even a bit tiresome, there’s a good reason. In the past seven months, President Donald Trump’s sweeping tariffs have touched nearly every aspect of U.S. imports.

Since early 2025, the average U.S. tariff rate has increased to roughly 18.6% as of August. That’s reportedly the highest level since the 1930s.

Some goods, particularly from countries such as India and Brazil, face tariffs as steep as 50%, while tariffs on Chinese imports soared above 100% in April.

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However, a new federal court ruling has found that most of the tariffs are illegal, and the U.S. Supreme Court (SCOTUS) just announced it will hear the case in early November.

What will that mean for you and your wallet in 2025? Here are three things to know.

1. A federal appeals court ruled most of Trump's ‘emergency’ tariffs illegal

Most of Trump’s controversial tariffs were imposed under the International Emergency Economic Powers Act (IEEPA). The law allows the president to declare national emergencies and take economic measures in response.

Trump declared that the U.S. trade deficit is a national emergency and invoked IEEPA to impose sweeping “reciprocal tariffs.” Initially, that meant a minimum 10% tariff on most imports and much higher tariffs on select countries.

However, recently, the U.S. Court of Appeals for the Federal Circuit struck down (PDF) most of those tariffs. In a 7 to 4 decision, the court ruled that IEEPA doesn’t authorize the president to impose taxes or tariffs.

“We agree that IEEPA’s grant of presidential authority to 'regulate' imports does not authorize the tariffs imposed by [Trump’s] Executive Order,” the majority wrote.

In ruling against the Trump administration, the federal appeals court emphasized that the power to levy tariffs is constitutionally vested in Congress, not the president.

In doing so, the court went on to point out that, “Notably, every Congressional delegation to the President of the core legislative power to impose tariffs includes well-defined procedural and substantive limitations.”

That August 29 decision largely affirmed a U.S. Court of International Trade finding from May 2025, that Trump’s tariffs were “invalid as contrary to the law.”

Note: The cases here are consolidated: V.O.S. Selections v. United States and Oregon v. Trump.

2. Trump thinks the court’s tariff ruling would be a ‘total disaster’ for the U.S.

Trump responded to the legal blow against his trade policies with a post on his Truth Social platform.

“ALL TARIFFS ARE STILL IN EFFECT! ... Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end. If these Tariffs ever went away, it would be a total disaster for the Country.”

Trump has framed tariffs as essential for protecting U.S. jobs, industries and long-term economic strength. He claims that in reversing them, "our country would be completely destroyed."

“Now, with the help of the United States Supreme Court, we will use them to the benefit of our Nation and Make America Rich, Strong, and Powerful Again!” Trump added.

Sen. Amy Klobuchar (D-Minn.) praised the court’s decision and, in a released statement, said, “Instead of raising costs with tariff taxes, the President should be focused on bringing relief to the American people and lowering costs.”

Earlier this year, Klobuchar joined Sens. Maria Cantwell (D-Wash.) and Chuck Grassley (R-Iowa) to introduce the Trade Review Act of 2025. If passed, the bipartisan legislation would reassert “limits on the president’s ability to unilaterally impose tariffs without the approval of Congress.”

Pacific Legal Foundation senior attorney Oliver Dunford, in a statement emailed to Kiplinger, praised the Court of Appeals decision, saying, “Any other decision would have raised insurmountable constitutional problems.”

Note: The Pacific Legal Foundation represents several plaintiffs suing the government in federal court to challenge the president’s authority to impose tariffs.

Meanwhile, many leading economists argue that Trump’s tariffs increase inflation, slow economic growth, hurt U.S. workers, and result in U.S. consumers paying the price through higher import costs.

Some studies project that the Trump tariffs will reduce long-run GDP by about 6%, lower wages by 5%, and impose significant lifetime losses on households.

3. Supreme Court to hear Trump tariffs appeal in November

Despite ruling most of the tariffs illegal, the federal circuit court delayed enforcement until mid-October 2025 to allow time for the Trump administration to appeal the dispute to the U.S. Supreme Court.

• Update: The Supreme Court will hear the appeal in early November 2025. So, all eyes will be on whether it upholds the appellate ruling or agrees with Trump’s expansive view of executive power under the IEEPA.
• Given the high-profile nature of this case and its implications for trade and executive authority, SCOTUS is fast-tracking the case.

On his social media platform, the president described the high stakes in a post:

“If we don’t win that, our country is going to suffer so greatly. … These deals — all done — would have to be unwound.”

That echoes language from the Trump administration's brief: “With tariffs, we are a rich nation; without tariffs, we are a poor nation.”

In any case, a ruling from the Supreme Court will ideally not only decide the legality of these tariffs but also clarify the constitutional limits on presidential emergency powers.

Bottom line: What tariffs mean for your 2025 budget

What does all this mean for you? Key tariffs remain in place for now, including those on hundreds of billions of dollars’ worth of Chinese goods, as well as steel and aluminum imports.

• As Kiplinger has reported, these tariffs affect a wide range of everyday and industrial products, including smartphones, machinery, cars, appliances, clothing and more.
• All told, they still cover about two-thirds of U.S. imports, leaving businesses and markets in limbo, as they face ongoing uncertainty about trade policy.

While the court fight about these tariffs plays out, the real cost is being reflected on store shelves.

The Budget Lab at Yale estimates that the tariffs already add about $2,400 a year to the average household’s expenses. That’s roughly a 1.8% price increase on everyday goods.

Some items are pinched more than others: Data show that shoe prices are up nearly 40%, apparel costs have jumped 37%, and some cars have seen sticker prices rise by several thousand dollars.

While the legal wrangling goes on, families are paying more for the things they buy most.

Remember: Tariffs are taxes that impact everyday household budgets and buying power in very real ways. Stay tuned.

This story has been updated to include information about the Supreme Court taking the case.

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