A federal appeals court has ruled that most of United States President Donald Trump’s sweeping global tariffs are unlawful, delivering a significant setback to his unilateral attempt to reshape U.S. trade policy.
In a 7-4 decision, the U.S. Court of Appeals for the Federal Circuit found that Trump’s actions were “invalid as contrary to law,” agreeing with a lower court ruling.
The court, however, delayed the impact of its judgment until mid-October to give the administration time to appeal to the Supreme Court, allowing the tariffs to remain in place for now.
“Because we agree that [International Emergency Economic Powers Act’s] grant of presidential authority to ‘regulate’ imports does not authorize the tariffs imposed by the Executive Orders, we affirm,” the majority wrote.
The case now sets up a high-profile legal test for the Supreme Court on the scope of presidential authority in trade matters. After October 14, the case will return to the lower court, which will weigh how the Supreme Court’s recent decision on nationwide injunctions affects the ruling.
The appeals court concluded that only Congress has the constitutional authority to impose tariffs, not the president acting alone. The ruling focused on whether the International Emergency Economic Powers Act, or IEEPA, allows the president to unilaterally set tariffs under the power to “regulate” imports.
Seven of the 11 judges determined that the law does not give Trump the authority to impose his “reciprocal” tariffs or the “trafficking” tariffs aimed at Canada, Mexico and China to curb fentanyl trafficking, declaring that “tariffs are a core Congressional power.”
“We discern no clear congressional authorization by IEEPA for tariffs of the magnitude of the Reciprocal Tariffs and Trafficking Tariffs,” the majority opinion stated.
“Given these considerations, we conclude Congress, in enacting IEEPA, did not give the President wide-ranging authority to impose tariffs of the nature of the Trafficking and Reciprocal Tariffs simply by the use of the term ‘regulate . . . importation.”
A group of four judges in the majority went further, holding that IEEPA grants no tariff authority at all. “The Government’s interpretation of IEEPA would be a functionally limitless delegation of Congressional taxation authority,” they wrote.
In dissent, four judges sided with Trump, arguing that his national emergency declaration amounted to an “unusual and extraordinary threat” that justified the tariffs. “IEEPA’s language, as confirmed by its history, authorizes tariffs to regulate importation,” the minority opinion stated.
Trump swiftly responded on his social media platform, rejecting the ruling and warning that blocking the tariffs “would literally destroy the United States of America.”
He urged the Supreme Court to back his position, writing, “Now, with the help of the United States Supreme Court, we will use them to the benefit of our Nation, and Make America Rich, Strong, and Powerful Again! Thank you for your attention to this matter.”
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