A U.S. federal appeals court has ruled 7-4 that the broad tariffs imposed by President Donald Trump’s administration are largely illegal because he exceeded his authority under the International Emergency Economic Powers Act (IEEPA). The ruling specifically found that the President does not have unilateral power to impose universal tariffs, a power constitutionally reserved for Congress.
The court’s opinion challenged Trump’s justification that trade imbalances constituted a national emergency warranting emergency tariffs. While the tariffs were deemed unlawful, the court allowed them to stay in place temporarily until October 14, 2025, permitting the Trump administration to appeal the decision to the Supreme Court.
This ruling invalidates numerous tariffs, including those on China, Mexico, and Canada, which were part of reciprocal tariff and trafficking-related duties. However, other tariffs enacted under different authorities, such as those on steel and aluminum, remain unaffected.
Trump publicly criticized the ruling, asserting that eliminating the tariffs would be disastrous for the country, and vowed to continue enforcing them. The White House affirmed its intention to defend the tariffs and is optimistic about winning in higher courts.
Legal experts view this case as a significant reaffirmation of constitutional limits on presidential trade powers and a key moment in defining the scope of executive authority under emergency powers.