Federal Court Rules Tariffs Illegal; Foreign Postal Services Cancelling Delivery to U.S. 

September 2, 2025
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The core Congressional power to impose taxes such as tariffs is vested exclusively in the legislative branch by the Constitution.

U.S. Court of Appeals for the Federal District in a 7-4 ruling that strikes down many of the tariffs imposed by President Donald Trump.

Why It Matters: The federal court ruled that President Trump lacked authority under the International Emergency Economic Powers Act (IEEPA)to impose sweeping tariffs he announced on April 2 against nearly every U.S. trading partner. The ruling applies only to tariffs on countries- not specific goods or sectors – and allows tariffs to remain in place until October 14 while the administration appeals to the Supreme Court. Regarding the ruling, President Trump posted on Truth Social: “Without Tariffs, and all of the TRILLIONS OF DOLLARS we have already taken in, our Country would be completely destroyed, and our military power would be instantly obliterated.” 

Separately, President Trump signed an executive order ending the “de minimis” exemption, which lets shipments $800 or under enter the U.S. duty-free. The White House cited concerns, including “the risks of evasion, deception, and illicit-drug importation are particularly high for low-value articles that have been eligible for duty-free de minimis treatment.” Effective August 29, foreign postal services must collect and pay the tariffs. As a result, at least 20 countries have temporarily suspended delivery to the U.S., with the Austrian Post warning: “This tightening poses major challenges for all postal companies worldwide when sending goods to the USA”. (Newsweek) 

What This Means for You: These tariff changes could raise costs for Americans buying imported goods, especially smaller online purchases under $800. With foreign postal services temporarily suspending shipments to the U.S., consumers may see delays, higher prices, or fewer options for international products, from electronics to specialty items. 

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by Karly Code, based in Kentucky

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