'Big blow to the president's agenda': NYT's Haberman details major Trump setback in court

29 August

CNN host Jake Tapper and New York Times White House correspondent Maggie Haberman on CNN on August 29, 2025 (Image: Screengrab via CNN / YouTube)

On Friday, the U.S. Court of Appeals for the Federal Circuit upheld a previous decision by a lower court that the vast bulk of President Donald Trump's tariffs — which he imposed by claiming emergency powers — were unconstitutional. And according to New York Times White House correspondent Maggie Haberman, it's one of the biggest legal setbacks yet for Trump's second administration.

During a segment with CNN host Jake Tapper, Haberman said that the decision was highly anticipated by everyone in the administration who works on trade issues. She added that administration officials had been fearing that it would be "difficult" to defend Trump's assumed emergency powers before the federal judiciary.

"The U.S. is going to end up in a position, if the Supreme Court upholds this ruling, and it's almost certainly going to go to the Supreme Court, the U.S. is now going to be in a position to pay people — countries, excuse me — back, for tariffs. That gets very complicated," she said. "So this is a big blow to the president's agenda. He has sometimes ignored courts. We'll see what this looks like."

Haberman's point that tariffs could have to be paid back to countries affected by them could prove expensive for taxpayers. The Associated Press reported that as of July, total year-over-year tariff revenue exceeded $159 billion. Trump imposed the tariffs by invoking the International Emergency Economic Powers Act (IEEPA) of 1977, which allows a president to assume certain new powers under an economic emergency. But during oral arguments, one of the judges hearing the case pointed out that the IEEPA statute doesn't even mention tariffs.

Moreover, Article I, Section 8 of the U.S. Constitution stipulates that only Congress has the power to levy tariffs, stating that the legislative branch "shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States."

Shortly after the decision was announced, Trump took to his Truth Social platform to blast the judges (who he deemed "Highly Partisan" in his signature style of oddly-placed capital letters) that struck down his tariffs. He also insisted that "ALL TARIFFS ARE STILL IN EFFECT!"

"If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak, and we have to be strong. The U.S.A. will no longer tolerate enormous Trade Deficits and unfair Tariffs and Non Tariff Trade Barriers imposed by other Countries, friend or foe, that undermine our Manufacturers, Farmers, and everyone else," he wrote. "If allowed to stand, this Decision would literally destroy the United States of America."

Watch Haberman's segment below, or by clicking this link.

- YouTubewww.youtube.com

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