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US Court Rules Trump Overstepped Authority on Tariffs, but Levies Remain Until October
A US federal appeals court has ruled that former President Donald Trump exceeded his authority when he imposed sweeping tariffs on nearly all US trading partners, dealing a significant blow to his trade agenda.
The US Court of Appeals for the Federal Circuit said in a 7–4 decision on Friday that Trump had no legal basis to use emergency powers to levy broad tariffs on imports. The ruling upheld a lower court decision from May but left the tariffs in place until mid-October, giving Trump’s legal team time to appeal to the Supreme Court.
Reacting to the decision, Trump vowed to fight on. “If allowed to stand, this Decision would literally destroy the United States of America,” he wrote on his social media platform.
The case centres on Trump’s actions in April, when he declared longstanding US trade deficits a “national emergency” and imposed reciprocal tariffs of up to 50% on countries with which the United States runs trade deficits, and a 10% baseline tariff on nearly all others. Earlier, in February, Trump had invoked the same emergency powers to place tariffs on China, Mexico, and Canada, citing concerns over illegal immigration and drug trafficking across the US border.
While several nations—including the UK, Japan, and the European Union—struck trade deals with Washington to avoid harsher penalties, many others were hit with levies that disrupted supply chains and rattled financial markets. Economists and lawmakers alike have warned that Trump’s approach risks higher prices for consumers, trade retaliation, and slower economic growth.
At the heart of the ruling is the 1977 International Emergency Economic Powers Act (IEEPA), which Trump used to justify his unilateral tariffs. While Congress has delegated some authority over tariffs to the executive branch, the court concluded that it was unlikely lawmakers intended to grant presidents unlimited powers to set trade duties.
“The Constitution gives Congress the power to set taxes, including tariffs,” the ruling stated, adding that Trump’s interpretation of the law risked undermining that principle.
Not all judges agreed. A dissent argued that the law does not unconstitutionally delegate legislative authority, noting past Supreme Court decisions that upheld presidential discretion in specific trade matters.
The ruling leaves open the possibility that Trump could pursue tariffs under other legal frameworks, such as Section 232 of the Trade Expansion Act of 1962, which allows duties on imports tied to national security concerns. However, such measures would require a Commerce Department investigation and cannot be imposed at the president’s discretion alone.
For now, the tariffs remain in effect, but the legal setback raises fresh questions about Trump’s ability to unilaterally reshape US trade policy. With the Supreme Court appeal looming, the outcome could have sweeping consequences for America’s economic relations and the limits of presidential power.
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Trump Weighs Troop Cuts in Spain and Italy Amid Growing Rift Over Iran War
President Donald Trump said on Friday that he is considering reducing the US military presence in Spain and Italy, widening a dispute with key NATO allies over their opposition to the ongoing war with Iran.
Speaking to reporters in the Oval Office, Trump suggested both countries had failed to adequately support Washington’s military campaign in the Middle East.
“Yeah, probably, I probably will. Why shouldn’t I?” Trump said when asked whether he would withdraw troops from the two countries. He added that Italy “has not been of any help” and described Spain as “absolutely horrible.”
The comments came just one day after Trump floated a similar proposal regarding Germany, following criticism from German Chancellor Friedrich Merz over the administration’s handling of the Iran conflict.
Trump has repeatedly argued that the US-led campaign against Iran serves the security interests of the entire Western alliance. He has expressed frustration that several NATO members have not provided stronger military or political backing, particularly in efforts to counter Iran and reopen the Strait of Hormuz.
According to the latest Pentagon figures, the United States has about 36,000 troops stationed in Germany, roughly 12,600 in Italy and nearly 3,800 in Spain. While Trump did not specify the scale of any potential reductions, reports in US media suggest the cuts under consideration could be substantial.
Tensions with Italy have grown in recent weeks after Prime Minister Giorgia Meloni publicly questioned the war. Trump, once a close ally of the Italian leader, accused her of lacking the courage to fully support the campaign.
Relations with Spain have been strained for longer. Disagreements initially emerged over Madrid’s stance on the war in Gaza and later expanded to include defence spending and NATO commitments. Spain has resisted Trump’s push for alliance members to raise defence spending to 5 per cent of gross domestic product.
Prime Minister Pedro Sánchez has said Spain will only increase military spending when it aligns with national interests. That position has drawn repeated criticism from Washington.
The Trump administration has previously threatened trade measures against Spain and has even raised the possibility of suspending the country from NATO. Reports last week indicated that such discussions have resurfaced amid Spain’s refusal to support the Iran campaign.
The diplomatic tensions come as the war enters its third month, with no clear end in sight. The conflict has disrupted global energy markets, especially after the closure of the Strait of Hormuz. Brent crude settled at around $114 a barrel on Friday, sharply higher than the roughly $70 level seen before the conflict began.
Trump’s latest remarks are likely to deepen divisions within NATO at a time when alliance unity is already under strain.
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Trump Threatens Troop Reduction in Germany Amid Dispute With Chancellor Merz
US President Donald Trump has suggested that the United States could reduce its military presence in Germany, escalating tensions with German Chancellor Friedrich Merz over the handling of the conflict involving Iran.
In a social media post on Wednesday, Trump said Washington was reviewing the possibility of withdrawing some American troops from Germany, with a decision expected soon. The announcement comes amid a growing public disagreement between the two leaders over US strategy in the Middle East.
“The United States is studying and reviewing the possible reduction of troops in Germany,” Trump wrote, signalling that the longstanding American military footprint in Europe’s largest economy could once again be under scrutiny.
Germany hosts some of the most important US military facilities outside the United States, including Ramstein Air Base, the headquarters of US European Command and US Africa Command, and Landstuhl Regional Medical Center, the largest American military hospital abroad.
Trump’s latest warning follows comments by Merz earlier this week, in which the German leader said Washington was being “humiliated” by Iran and questioned the effectiveness of the US approach to the conflict. Merz has repeatedly called for a clearer strategy and a diplomatic resolution to the crisis.
Despite the sharp exchange, Merz said on Wednesday that his personal relationship with Trump remained strong. He added, however, that he had harboured concerns from the outset about the military campaign against Iran.
The two leaders met at the White House in March, shortly after the United States and Israel launched strikes on Iranian targets. At the time, Merz said Germany was prepared to work closely with Washington on future regional strategy, while also warning that a prolonged conflict could inflict serious damage on the global economy.
That concern has intensified as the closure of the Strait of Hormuz continues to disrupt global energy markets. The vital waterway, through which about one-fifth of the world’s oil supply normally passes, has remained effectively shut since fighting began in late February.
“We are suffering considerably in Germany and in Europe from the consequences of the closure of the Strait of Hormuz,” Merz said, urging all sides to seek a resolution.
Trump, however, has shown increasing frustration with Germany’s stance. In a post on Tuesday, he criticised Merz’s remarks on Iran and accused the chancellor of misunderstanding the threat posed by Tehran’s nuclear ambitions.
This is not the first time Trump has threatened to reduce US troop levels in Germany. During his first term, he announced plans to withdraw nearly 10,000 troops, citing Berlin’s defence spending. That proposal was later halted by the Biden administration.
Any renewed reduction would likely raise fresh questions about US commitment to NATO and European security at a time of heightened global instability.
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