A federal appeals court has ruled against many of President Donald Trump’s tariffs, stating that he misused his authority under the emergency powers he claimed to enact them. The U.S. Court of Appeals for the Federal Circuit decided 7-4 that Trump exceeded his powers under the International Emergency Economic Powers Act (IEEPA). While the court struck down most of his tariff policies, it postponed the enforcement of its decision until October 14, allowing the administration time to appeal to the Supreme Court.
The court emphasized that the power to impose taxes, including tariffs, belongs to Congress, not the President. It stated that without a clear delegation from Congress, Trump did not have the authority to impose such tariffs. The ruling noted that Congress did not intend for the IEEPA to grant the President broad powers to impose tariffs simply by using the term "regulate importation."
This ruling could mean the United States might have to refund billions of dollars collected from tariffs during Trump’s presidency. The decision could invalidate significant tariffs placed on various countries as part of Trump’s "Liberation Day" tariff announcements, as well as those imposed on Canada, China, and Mexico amid ongoing negotiations regarding immigration and drug trafficking.
In response to the ruling, Trump took to Truth Social to criticize the court, labeling it a "Highly Partisan Appeals Court" and claiming the decision was incorrect. He warned that canceling his tariffs would be disastrous for the country, arguing that the U.S. should not tolerate unfair trade practices from other nations that harm American manufacturers and farmers.
The appeals court’s decision follows a prior ruling from a federal trade court in May, which also found that Trump had overstepped his authority under the IEEPA. The appeals court pointed out that this was the first time the IEEPA had been used to impose tariffs on imports, highlighting the lack of precedent as a reason to question the legality of Trump’s actions.
