A U.S. federal appeals court has declared that most of President Trump’s sweeping global tariffs are unlawful, ruling they exceeded executive authority under the 1977 International Emergency Economic Powers Act (IEEPA)
What Did the Court Decide?
In a 7–4 decision issued on Friday, the U.S. Court of Appeals for the Federal Circuit upheld a lower court’s finding that the tariffs went beyond the powers granted by IEEPA, noting the law does not explicitly empower the president to impose tariffs or taxes.Tariffs Remain in Force—for Now
Although deemed illegal, the ruling allows the tariffs to stay in effect until October 14 to permit a possible Supreme Court appeal from the Trump administration.
Administration’s Reaction
President Trump reacted strongly, labeling the decision “a total disaster for the country” and calling the court “highly partisan” while signaling plans to pursue the matter before the Supreme Court.
Background of the Legal Battle
- In May 2025, the U.S. Court of International Trade held that Trump had overreached by using emergency powers to impose tariffs—ruling they were unlawful under IEEPA.
- The appeals court reaffirmed that the Constitution reserves tariff-setting to Congress, and emergency statutes do not override that requirement.
Implications Ahead
- If upheld by the Supreme Court, this ruling could significantly limit unilateral executive power in shaping U.S. trade policy.
- Businesses and trading partners may see refunds for past tariffs, though the appeals court has sent certain issues back to the lower court for further review
