Trump’s “Liberation Day” Tariffs Blocked by Federal Courts, Supreme Court to Review

Federal courts have invalidated tariffs imposed by President Trump in 2025 under the International Emergency Economic Powers Act, but the tariffs remain in place while the Supreme Court prepares to review the case.

On April 2, 2025, President Trump announced the “Liberation Day” tariffs through Executive Order 14257. The order established a 10% baseline tariff on imports from nearly all countries and set higher “reciprocal” rates for major trading partners, using IEEPA as the legal basis.

In May 2025, the U.S. Court of International Trade determined that the president exceeded his authority under IEEPA by implementing the reciprocal tariffs. The court issued a permanent injunction against enforcement of these tariffs, including those affecting China, Canada, and Mexico.

The U.S. Court of Appeals for the Federal Circuit upheld the lower court’s decision in August 2025. The appellate court confirmed that most of the tariffs imposed under IEEPA lacked proper legal authority, but allowed them to remain in effect temporarily while the case proceeds to the Supreme Court.

What the numbers show

• The “Liberation Day” tariffs were announced on April 2, 2025
• China imposed 10–15% tariffs on U.S. agricultural goods in response
• Canada announced tariffs on $107 billion of U.S. imports
• The Supreme Court scheduled oral arguments for November 2025

While the court rulings addressed tariffs imposed under IEEPA, certain other tariffs remained unaffected. Tariffs on steel, aluminum, and automobiles, established under Section 232 authority, continue to apply and were not part of the court’s decisions.

Trading partners responded to the 2025 tariffs with their own measures. China set tariffs ranging from 10% to 15% on U.S. agricultural exports, Canada announced duties on $107 billion worth of U.S. goods, and Mexico planned additional countermeasures.

The Supreme Court agreed to review consolidated appeals related to the IEEPA tariffs. Oral arguments are scheduled for early November 2025, and the contested tariffs will remain in effect until a final decision is issued.

According to legal analysis, importers could be required to pay back duties if the Supreme Court reinstates the IEEPA tariffs, especially for goods not yet liquidated. However, due process considerations may influence the outcome for affected importers.

* This article is based on publicly available information at the time of writing.