Trump's Use of Tariffs Faces Legal Test Ahead of Aug. 1 Deadline

Source: Bloomberg

July 31, 2025 at 6:00 AM EDT


The bulk of President Donald Trump’s global tariffs face their biggest test yet when a US appeals court weighs arguments on their legality Thursday, a day before higher rates against many countries are set to kick in.

The tariffs were allowed to stay in place temporarily even after the US trade court in May sided with a group of Democratic-led states and small businesses that claimed Trump wrongfully invoked an emergency law to justify the levies. Now, the US Court of Appeals for the Federal Circuit is set to weigh whether the tariffs are constitutional. A ruling is possible within weeks.

Trillions of dollars of global trade are embroiled in the legal fight. A loss for the government would raise questions about the validity of Trump’s recent trade deals. The administration also would be forced to contend with demands to refund tariffs that were already paid.

The cases is likely to wind up at the Supreme Court, drawing the justices into yet another fight this year over Trump’s agenda.

Read more: https://www.bloomberg.com/news/articles/2025-07-31/trump-s-use-of-tariffs-faces-legal-test-ahead-of-aug-1-deadline