A U.S. appeals court has dealt a blow to Donald Trump's trade policies, ruling that most of his sweeping global tariffs are illegal. The move could have a huge impact on Trump's efforts to unilaterally reshape U.S. trade relations.
In a groundbreaking decision by a margin of 7-4, a federal appeals court rejected Trump’s authority to impose most of these tariffs. The court confirmed that Trump’s actions were unconstitutional, emphasizing that the power to “regulate” imports, as defined by the International Emergency Economic Powers Act (IEEPA), does not authorize the president to impose tariffs.
Although the court gave the Trump administration time to appeal to the Supreme Court, the tariffs remain in place until mid-October. The lawsuit becomes one of the most important legal questions for the Supreme Court about the scope of presidential authority over trade policy.
Trump's reaction and legal battle
After the ruling, Trump took to social media to sharply criticize the court's decision, warning that lifting the tariffs could"literally destroy the United States of America." He called on the Supreme Court to uphold his authority to impose tariffs unilaterally, and expressed his belief that he would use them"for the benefit of the nation, to make America rich, strong, and powerful again."
The court confirmed that Congress, not the president himself, has the exclusive authority to impose tariffs. The main issue was whether the authority to “regulate” imports under IEEPA included the ability to impose tariffs.
Seven of the 11 justices agreed that the IEEPA law does not give Trump the authority to impose “reciprocal” tariffs. According to the court, tariffs are “a primary power of Congress.”
The IEEPA does not give the president “broad authority to impose tariffs of this nature merely by using the term ‘regulate imports.’” The four justices in the minority opinion, on the contrary, held that a declaration of an emergency is sufficient reason to justify the tariffs.
The course of the lawsuit
The lawsuit began when a group of small businesses and a coalition of states sued the Trump administration for abuse of power. They argued that Trump abused the rarely used IEEPA law. An initial court ruling declared the tariffs illegal, prompting an appeal. During a hearing in July, appeals court judges were skeptical of Trump’s argument, noting that the law does not explicitly mention tariffs and that no president has used it in this way before.
The court decision could significantly influence future trade negotiations and US foreign policy.
Expensive apartments in Slovakia
Slovaks are having a tough time buying their own home across Europe. According to the latest edition of the Deloitte Property Index 2025, Slovaks have to work longer than most Europeans to afford a new apartment.
While the average European needs roughly 10 annual salaries to buy an apartment, Slovaks don't even need 14. When comparing salaries to real estate prices, Slovak cities rank high in the unaffordability rankings.
Košice and Banská Bystrica overtook Bratislava
The report made a shocking finding: "The Slovak cities of Košice, Banská Bystrica and Bratislava are among the seven least accessible cities in Europe."
In the ranking, which also surpasses Prague, Košice came in fourth place, where buying an apartment requires up to 14.2 times the gross annual salary. Even more surprisingly, in this respect, they are ahead of Banská Bystrica, which finished in sixth place with a value of 12.8 times the annual salary. Bratislava is in seventh place with a value of 12.3.
Other European cities with disastrous affordability include Amsterdam (15.4), Athens (15.3) and Prague (15.0). At the other end of the scale is Odense, Denmark, where only 4.9 times the annual salary is needed to buy an apartment.
What drives the real estate market?
The property market across Europe is adapting to new, more challenging conditions. High interest rates, rising rents and a slowdown in new housing construction are forcing people and developers to be cautious. However, demand, especially in large cities, continues to persist.
In the context of European-wide prices, Slovakia is in the middle of the ranking with an average price of €3,252/m² for a new apartment, which represents a year-on-year increase of 4.7%.
The situation in Slovakia remains tense, and although mortgage interest rates are starting to ease slightly, apartment prices continue to rise. Insufficient construction and huge demand make owning your own home a luxury that Slovaks have to save for the longest in Europe.
