'Total disaster for country': Trump slams US appeals court after ruling against tariffs
Donald Trump has criticised a federal appeals court ruling against his emergency tariffs, calling it a "total disaster" for the country. He insists the tariffs are vital for protecting American workers and reducing trade deficits, warning that the...
In a long post on Truth Social, Trump accused the appeals court of being “highly partisan” and insisted the Supreme Court would side with him. “ALL TARIFFS ARE STILL IN EFFECT!” he wrote. “If these tariffs ever went away, it would be a total disaster… this decision would literally destroy the United States of America.”
He argued that tariffs were the strongest tool to defend American workers, farmers, and manufacturers, adding that the US would no longer tolerate “enormous trade deficits” or “unfair barriers” from other countries.

What Did the US Appeals Court Rule?
A federal appeals court ruled that Trump did not have the legal right to impose sweeping tariffs using emergency powers. The judges said the International Emergency Economic Powers Act (IEEPA), a 1977 law, did not allow him to tax imports on such a wide scale.However, the court stopped short of scrapping the tariffs immediately, giving Trump time to appeal to the Supreme Court. The decision makes it harder for him to unilaterally reshape decades of American trade policy.
Trump’s Defence of Tariffs
Trump argues that tariffs are his strongest weapon to protect American workers, farmers, and manufacturers. He claims they bring billions into the federal Treasury and help reduce unfair trade deficits.He has also used tariffs to pressure countries like Japan, Canada, Mexico, and the European Union into signing trade deals. By July this year, the US had collected $142 billion in tariff revenue, more than double compared with the same time last year.
Why Were Trump Tariffs Challenged?
The main issue is Trump’s claim that trade deficits and illegal immigration are “national emergencies.” Using this reasoning, he imposed:‘Liberation Day’ tariffs (April 2): Up to 50% on countries with which the US runs trade deficits, and 10% on almost everyone else.
Businesses and states challenged these taxes in court, arguing that trade deficits are not an “unusual and extraordinary threat” under the IEEPA. The US has run trade deficits for nearly 50 years, in both good and bad economic times.
The Bigger Picture
While Trump insists the tariffs protect America, critics, as reported by AP, say they have disrupted global markets, strained ties with allies, and risk driving up consumer prices.If the Supreme Court strikes them down, the US government may even have to refund billions in collected tariffs, a blow to its finances.
Trump has warned that scrapping his tariffs could trigger another Great Depression. His opponents, however, believe the ruling is a step toward restoring Congress’s control over trade policy.
Inputs from agencies
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.