A US federal appeals court has ruled that a series of global tariffs imposed by President Donald Trump are illegal, a major setback for his economic policy. Trump has strongly criticized the decision and announced that he will appeal to the Supreme Court, which he says is essential to the strength of the US economy. The decision could have profound implications for global trade and relations with other countries, including India. Details of the decision On August 29, 2025, the Federal Circuit Court of Appeals ruled 7-4 that Trump had overstepped his constitutional bounds by abusing the International Emergency Economic Powers Act (IEEPA). The court ruled that the president has broad powers in emergencies, but they do not include imposing tariffs. The decision applies to the reciprocal tariffs introduced in April and the tariffs imposed on China, Canada, and Mexico in February, while the steel and aluminum tariffs are exempt. The court allowed the tariffs to remain in effect until October 14 so that the Trump administration can file an appeal to the Supreme Court. Trump posted on his social media platform 'Truth Social' Responding, he said: “This decision is biased and wrong. Tariffs are necessary to protect American industries, farmers, and workers. The Supreme Court will correct it and America will win.” According to experts, the decision could undermine Trump’s economic policy, which uses tariffs as a key foreign policy tool. It has also raised questions about agreements with the European Union, India, and other partners. The 50 percent tariff imposed on India, which was imposed as a penalty for buying oil from Russia, has caused a dispute. The Indian Ministry of External Affairs said that talks between the two countries are ongoing. After this decision in global financial markets, Asian and European stocks saw a 1 to 2 percent increase, while the value of the US dollar also accelerated. However, if the Supreme Court does not rule in Trump’s favor, the future of billions of dollars collected from these tariffs will become uncertain. "Tariffs are the backbone of the American economy, and we will keep them in place at all costs." — Donald Trump References The Hindu, Express Urdu, Sach TV, Dawn News, Amit News, X Post