WASHINGTON — A federal appeals court delivered a significant blow to President Donald Trump’s trade policy Friday, ruling that his sweeping global tariffs exceeded presidential authority while allowing the duties to remain in place through mid-October.
The U.S. Court of Appeals for the Federal Circuit voted 7-4 to uphold a lower court’s determination that Trump overstepped his powers when he invoked emergency economic authorities to impose wide-ranging tariffs on nearly all U.S. trading partners.
The president immediately signaled his intention to appeal the decision to the Supreme Court, taking to his Truth Social platform to denounce the ruling.
“The appeals court incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end,” Trump wrote, adding that he would fight back “with the help of the United States Supreme Court.”
Since returning to office in January, Trump has used the International Emergency Economic Powers Act (IEEPA) to impose “reciprocal” tariffs featuring a 10% baseline rate, with higher levies targeting dozens of economies. He has also invoked similar authorities for separate tariffs on Mexico, Canada, and China over drug trafficking concerns.
The Court of International Trade initially blocked most of these duties in May, ruling that Trump had exceeded his authority with the across-the-board global levies. However, the appeals court temporarily stayed that ruling to consider the case.
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Friday’s ruling emphasized the limits of presidential emergency powers regarding trade policy.
“The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax,” the court wrote.
The judges specifically addressed Trump’s “reciprocal” tariffs and those imposed over drug trafficking, concluding: “We conclude they are not” authorized under current law.
Just hours before the appeals court released its decision, Trump administration officials filed a supplementary brief arguing that blocking the tariffs would damage U.S. foreign policy and national security interests.
Commerce Secretary Howard Lutnick warned that such a ruling “would threaten broader US strategic interests at home and abroad, likely lead to retaliation and the unwinding of agreed-upon deals by foreign-trading partners” and could “derail critical ongoing negotiations.”
Treasury Secretary Scott Bessent added that suspending the tariffs “would lead to dangerous diplomatic embarrassment.”
The decision raises questions about existing trade agreements Trump has negotiated with major partners, including the European Union. It also creates uncertainty about the billions of dollars already collected through these tariffs, as companies could potentially seek reimbursements if the Supreme Court ultimately rules against the administration.
The ruling does not affect sector-specific tariffs the Trump administration has imposed on steel, aluminum, automobiles, and other targeted imports, which were implemented under different authorities.
With the temporary stay extending through mid-October, the case now appears headed for the Supreme Court, where Trump will likely seek to overturn the appeals court decision. The conservative-majority high court’s ruling could have far-reaching implications for presidential trade authority and the future of America’s tariff policies.
Several other legal challenges to Trump’s emergency-based tariffs remain pending in various courts.
