Winning Bizness Desk
Mumbai.A US appeals court has ruled that most of the tariffs imposed by former President Donald Trump are illegal. The court said that the law Trump used to justify these tariffs did not give him unlimited powers to impose duties on imports. It clarified that the authority to levy tariffs rests with the US Congress, not the president.
Temporary relief until Supreme Court appeal
Although the decision went against Trump, the court delayed its enforcement until October. This pause gives Trump’s legal team the chance to challenge the verdict before the Supreme Court. For now, the tariffs remain in effect.
Trump reacts with strong criticism
Reacting sharply to the ruling, Trump posted on social media that removing these tariffs would destroy the United States. He has long argued that tariffs are essential to protect American jobs and industries.
Tariffs imposed on major trading partners
During his presidency, Trump had imposed tariffs on imports from China, Canada, Mexico, and other countries. He claimed that America’s trade deficit was itself a form of national emergency. To justify his actions, Trump invoked the International Emergency Economic Powers Act (IEEPA), stating that trade imbalance threatened national security.
Court says tariffs not covered under IEEPA
The appeals court dismissed Trump’s argument. It pointed out that when the IEEPA was passed in 1977, it was never meant to allow presidents to impose tariffs without limits. The judges ruled by a 7-4 majority that tariff power lies only with Congress. The court stressed that the word “tariff” is not even mentioned in the IEEPA text.
Risk of heavy financial setback
Trump’s legal team had warned the court that if tariffs are rolled back, the US government may need to return 159 billion dollars (around 13 lakh crore rupees) collected from duties. This could create a massive hole in the American treasury.
India faces 50 percent tariff blow
India was one of the worst affected countries, as the Trump administration imposed a 50 percent tariff on its exports starting August 27. According to the Global Trade Research Initiative, this could impact Indian exports worth 5.4 lakh crore rupees. Products like textiles, gems and jewellery, seafood, and furniture will become costlier in the US, reducing demand by nearly 70 percent.
Global competitors benefit from tariff gaps
With India’s products becoming expensive, other countries such as China, Vietnam, and Mexico with lower tariff rates are likely to step in. These countries can sell goods at cheaper prices, taking away India’s market share in the US.
Russia oil purchases triggered tariff action
Trump had also justified the tariffs on India by pointing to its rising oil imports from Russia. Before the Ukraine war, India used to import only 0.2 percent of its crude oil from Russia. By May 2023, this had surged to 45 percent. Between January and July 2025, India was importing 1.78 million barrels per day. For two consecutive years, India has spent over 130 billion dollars annually on Russian oil.
Story in a nutshell
- US court rules Trump tariffs illegal, but delays ruling
- Court says only Congress has tariff powers
- Trump says removing tariffs will ruin America
- Legal battle may go to Supreme Court soon
- Risk of $159 billion refund to businesses
- India hit hard with 50 percent tariff
- Russian oil imports one reason behind action
