In a major legal blow to former President Donald Trump’s trade strategy, a U.S. appeals court has ruled that the majority of his sweeping global tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were beyond his authority and therefore illegal.
However, the tariffs will remain in effect until at least October 14, while the administration appeals to the U.S. Supreme Court.
A divided 7–4 decision by the U.S. Court of Appeals for the Federal Circuit largely upheld a May ruling by the Court of International Trade. That decision had declared that Trump’s invocation of national emergencies—particularly citing trade deficits and fentanyl trafficking—did not legitimately justify imposing broad import tariffs on global partners.
The appeals court emphasized that the IEEPA does not grant the president power to impose tariffs, noting that while the law empowers the president to address emergencies, it “does not explicitly include the power to impose tariffs, duties, or the like, or the power to tax.”
Despite the ruling, the tariffs remain in place temporarily, as the court has granted the administration time to pursue further legal review. The case is likely headed to the U.S. Supreme Court for a final resolution.
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The decision undermines a central pillar of Trump’s trade policy, which relied on broad emergency powers to circumvent congressional approval for tariffs on more than 60 countries. Critics argue the ruling reasserts Congress’s exclusive power to levy taxes and tariffs.
Supporters of the ruling say it protects constitutional limits on executive power, while the Trump administration maintains the tariffs were necessary for safeguarding national and economic security.
