A US federal appeals court has ruled that many of President Donald Trump’s sweeping tariffs were imposed illegally, though it allowed them to remain in effect for now, setting up a likely showdown at the Supreme Court.
In a 7-4 decision, the Court of Appeals for the Federal Circuit affirmed a lower court ruling that Mr. Trump exceeded his authority when he used emergency economic powers to levy broad tariffs on America’s trading partners. Judges found that the International Emergency Economic Powers Act (IEEPA), which the president invoked, does not explicitly grant the power to impose duties or taxes.
Despite the ruling, the court left the tariffs in place until mid-October, giving Mr. Trump time to appeal. In a post on Truth Social, the president dismissed the ruling as incorrect and vowed to fight on, declaring that “the United States of America will win in the end” with the Supreme Court’s help.
The decision is a setback for Mr. Trump, who since returning to the White House in January has relied heavily on tariffs as a cornerstone of his economic and foreign policy. He has imposed a baseline 10% levy on nearly all US trading partners, while applying higher rates to specific countries. He has also introduced separate duties targeting Mexico, Canada, and China, citing concerns over drug trafficking.
The case before the courts, however, focuses on Trump’s global “reciprocal” tariffs. The Court of International Trade earlier found that such measures overstepped presidential authority, but the appeals court temporarily kept them in effect while reviewing the case.
The ruling noted that although the president has “significant authority” under IEEPA to respond to national emergencies, the law does not extend to creating new taxes or tariffs. “We conclude they are not [authorized],” the judges wrote, clarifying that their decision was not about policy but about whether Trump’s use of the statute legally supported the duties.
The decision also raises questions about billions of dollars already collected in tariffs and the future of trade agreements Trump has negotiated with partners including the European Union. If the Supreme Court ultimately strikes down the levies, companies affected by them may seek reimbursement.
Senior administration officials warned against the ruling, filing arguments just hours before the decision was announced. Commerce Secretary Howard Lutnick cautioned that blocking the tariffs would damage US foreign policy and invite retaliation, while Treasury Secretary Scott Bessent said suspending them would risk “dangerous diplomatic embarrassment” and derail ongoing negotiations.
With the Supreme Court now expected to take up the case, the dispute highlights the tension between executive authority in economic emergencies and the limits imposed by law. For Trump, the outcome will determine whether tariffs remain his most powerful tool in reshaping America’s trade relationships.
