A federal appeals court ruled on Friday that most of President Trump’s global tariffs were illegal. The ruling explains the president exceeded his authority in using emergency powers to impose them.
The judges allowed the tariffs to stay in place as the case continues to be adjudicated in a lower court. Friday’s decision from the US Court of Appeals for the Federal Circuit reaffirms an earlier ruling by the Court of International Trade.
Trump responded to the decision on Truth Social, saying “ALL TARIFFS ARE STILL IN EFFECT!” He also called the court “Highly Partisan” and said “with the help of the United States Supreme Court, we will use [tariffs] to benefit our nation.”
The case is expected to eventually make it to the US Supreme Court, and the Trump administration can now decide whether to appeal.
It means the “reciprocal” tariffs Trump unveiled on dozens of US trade partners (which you can see in the graphic below) now face a fresh bout of legal limbo.
Meanwhile, Brazilian President Luiz Inacio Lula da Silva has authorized plans to retaliate against the 50% US tariffs imposed by President Trump, though the Brazilian leader emphasized he is looking to negotiate with the US administration.
Separately, the $800 duty-free loophole ended Friday, with small imported packages to the US facing tariffs of 10% to 50%, depending on their origin.
Meanwhile, Mexico is set to join the US with tariffs and will raise duties on Chinese goods under its 2026 budget plan, Bloomberg reported on Wednesday. The proposal, due next month, targets cars, textiles, and plastics to shield local industries from cheap imports.
US pressure on Mexico stems from Trump’s claim that cheap Chinese goods slip into Mexico before heading north.
Also, Trump’s 50% tariffs on India have now kicked in, a move that experts say could upend a decades-long push by Washington to forge closer ties with New Delhi. Trump added an extra 25% tariff on Indian imports because of the country’s purchase of Russian oil.
The unfolding situations with both India and Mexico are the latest examples of how Trump’s tariffs are pushing countries to choose sides between the US and China.
Read more: What Trump’s tariffs mean for the economy and your wallet
Here are the latest updates as the policy reverberates around the world.
LIVE 1777 updates
Appeals court invalidates many of Trump’s tariffs. Next stop: The Supreme Court.
A federal appeals court struck down most of President Trump’s Congress-averting global import tariffs Friday in a dispute that’s predicted to head to the US Supreme Court.
The 7-4 ruling, issued by 11 judges for the US Court of Appeals for the Federal Circuit in Washington, D.C., allows the tariffs to remain in place while the administration decides on an appeal to the US Supreme Court.
The decision upholds a ruling handed down in May by the US Court of International Trade (CIT), saying that the president lacked legal authority to order, by way of executive orders, a series of global tariffs imposed on US trading partners. […]
The court emphasized that under the US Constitution, Congress is empowered to lay and collect taxes, duties, imposts, and excises and to regulate commerce with foreign nations.
“Tariffs are a tax, and the framers of the Constitution expressly contemplated the exclusive grant of taxing power to the legislative branch,” the ruling said.
Read more here.
Trump’s trade war gets more chaotic than ever after court ruling
Yahoo Finance senior columnist Rick Newman writes:
He also notes that the appeals court left the duties in place until October to allow the Supreme Court time to weigh in. Until then, however, it’s not clear what businesses can — or should — do.
Read more here.
China’s trade envoy meets US officials to discuss economic ties
Reuters reports:
Read more here.
India’s Modi tours chip plant with Japan’s Ishiba
Bloomberg reports:
Read more here.
Japan’s Akazawa canceled US trip over rice: Report
Bloomberg reports on some troubles on the US-Japan trade front:
Read more here.
What happens to Trump’s tariffs now?
The Associated Press examines what may happen from here — both on the legal front and on the broad implications if the Supreme Court does ultimately end up invalidating the duties.
Read more here.
Fri, August 29, 2025 at 10:05 PM UTC
Trump’s reciprocal tariffs shot down by appeals court
A wide swath of President Trump’s tariffs were shot down by a federal appeals court on Friday, which found the administration’s use of emergency economic powers to impose reciprocal tariffs on nearly every US trading partner overstepped the powers granted by that law.
The Trump administration had argued that a president can unilaterally impose wide-ranging, global tariffs by invoking a law enacted in 1977 to protect the US from international threats known as “IEEPA” — the International Economic Emergency Powers Act
IEEPA authorizes the president to “regulate” international commerce after declaring a national emergency.
Tariffs imposed by the administration under Section 232 rules, which includes categories like steel and aluminum imports, will not be impacted by this ruling.
Fri, August 29, 2025 at 1:09 PM UTC
US goods trade deficit widens sharply in July
Imports to the US surged in July, widening the US trade deficit 22.1% to $103.6 billion last month, the Census Bureau said on Friday.
Imports of goods jumped $18.6 billion to $281.5 billion, while goods exports dipped $0.1 billion to $178 billion.
The effect of the growth in imports could drag on economic growth in the third quarter.
More from Reuters:
Read more here.
Fri, August 29, 2025 at 10:55 AM UTC
Packages under $800 have been able to avoid tariffs for years. Not anymore.
Yahoo Finance reporter Emma Ockerman looks into the de minimis exemption, which is ending on Friday, and its effects on businesses and consumers:
Read more here.
Fri, August 29, 2025 at 10:51 AM UTC
Caterpillar sees tariff impact of up to $1.8 billion this year
Bloomberg reports:
Read more here.
Fri, August 29, 2025 at 9:37 AM UTC
Lula authorizes retaliation process against Trump’s tariffs
Brazil’s Vice President Geraldo Alckmin said Thursday that President Luiz Inacio Lula da Silva has authorized retaliation against President Trump’s 50% tariffs.
A source added that the US will be officially notified on Friday, confirming a report from Brazilian newspaper O Estado de S. Paulo.
Bloomberg News reports:
Read more here.
Thu, August 28, 2025 at 5:00 PM UTC
What role do farm products have in US-China trade deal?
Global grain traders are closely watching the US-China talks for any insight on agricultural tariffs. The outcome could be key for American farmers trying to regain access to their top export market.
Reuters reports:
Read more here.
Thu, August 28, 2025 at 4:23 PM UTC
Trump tariffs are increasingly forcing countries to pick sides between the US and China
The US’s relationships with India and Mexico highlight how President Trump’s trade disputes are starting to polarize nations.
Yahoo Finance’s Ben Werschkul reports:
Read more here.
Thu, August 28, 2025 at 3:48 PM UTC
EU proposes tariff removal on US imports to speed up lower US car duties
On Thursday, the European commission proposed removing tariffs on US industrial goods, a step that could trigger a retroactive cut in US tariffs on European cars. President Trump has already agreed to cut tariffs on cars built in the European Union but this latest move by the EU could be seen as a way to speed this up.
Reuters reports:
Read more here.
Thu, August 28, 2025 at 3:41 PM UTC
Brown-Forman alcohol sales in Canada fall 60% amid tariff-related boycott
A Canadian boycott in protest of the Trump administration’s tariffs is hitting Jack Daniel’s maker Brown-Forman (BF-B, BF-A) hard.
Brown-Forman’s sales in Canada fell sharply by 60% as the distiller called out “significant headwinds” due to the US-Canada trade dispute.
In March, most Canadian provinces, including Ontario, Quebec, and British Columbia, retaliated against President Trump’s tariffs on Canadian goods by pulling US liquor from retail locations. Only two provinces, Alberta and Saskatchewan, have since put US liquor back on shelves.
“Canada’s organic net sales declined nearly 60% as beverage alcohol products produced in the United States remained off the shelves in the majority of the Canadian provinces,” Brown-Forman CEO Lawson Whiting said in the company’s earnings call. “While our non-U.S. brands, such as Diplomatico and El Jimador, continued to deliver growth, they were not able to offset the decline of our brands that are produced in the US.”
Thu, August 28, 2025 at 12:48 PM UTC
India’s small businesses scramble to cushion blow from Trump’s 50% tariffs
Tens of thousands of small businesses in India are rushing to find new buyers in markets across Europe, Africa and Asia in order to lessen the impact of President Trump’s 50% tariffs on exports to the US, which came into effect on Wednesday.
Reuters reports:
Read more here.
Thu, August 28, 2025 at 12:00 PM UTC
HP’s profit forecast suggests it can withstand tariff hit
Bloomberg News reports:
Read more here.
Thu, August 28, 2025 at 11:08 AM UTC
Oil drops as US berates India and surplus concerns flare again
Oil fell on Thursday as traders continued to monitor the situation between the US and India, after President Trump hit New Delhi with 50% tariffs over its purchase of Russian oil.
Bloomberg News reports:
Read more here.
Thu, August 28, 2025 at 9:05 AM UTC
Mexico set to raise tariffs on imports from China
Bloomberg reports that the Mexican government plans to raise tariffs on China as part of its 2026 budget proposal next month. The move is aimed at protecting domestic industries and acquiescing to a request from President Trump.
From Bloomberg:
Read more here.
Thu, August 28, 2025 at 8:46 AM UTC
Japan’s Akazawa cancels US trip citing administrative talks
Japan’s top trade negotiator, Ryosei Akazawa canceled a last-minute trip to Washington on Thursday, delaying talks on a $550 billion investment package Tokyo has offered in return for relief from heavy tariffs. Akazawa had planned to finalize the deal in writing, including how investment returns would be shared between the US and Japan.
Reuters reports:
Read more here.
