A U.S. federal appeals court ruled Friday that a large portion of the tariffs imposed by Donald Trump are illegal, upholding a lower court ruling and undermining the president's protectionist push, which has vowed to appeal to the Supreme Court.
The case concerns global tariffs, that is, those that do not affect specific sectors, such as the automotive, steel, aluminum, or copper sectors.
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The ruling, adopted by a majority of seven to four, allows the general tariffs to remain in effect until mid-October.
But the decision represents a setback for the president, who since returning to the White House in January has imposed tariffs on his trading partners that vary between 10% and 50% as a wide-ranging economic policy tool.
It also casts doubt on the agreements Trump has reached with important trading partners such as the European Union. Likewise, raises the question of what would happen to the billions of dollars raised by the United States since the tariffs were implemented if the Supreme Court does not uphold him.
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The court issued the rulingincorrectly","but they know that the United States of America will win in the end", Trump reacted on his Truth Social platform, adding that he will fight to keep the tariffs.
"ALL TARIFFS REMAIN IN PLACE!", he noted."Now, with the help of the United States Supreme Court, we will use them to serve our country".
"Catastrophe"
Trump has invoked the International Emergency Economic Powers Act (IEEPA) to impose reciprocal tariffs on nearly all of the United States’ trading partners, with a base of 10 percent and higher rates for dozens of economies. He has also used similar regulations to impose separate tariffs on Mexico, Canada, and China as penalties for the flow of drugs into the United States. Friday’s ruling upholds a lower court’s decision. According to the text of the ruling, the law grants the president broad powers to take various actions in response to a declared national emergency, but none of these actions explicitly includes the power to impose tariffs and other taxes.
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The execution of the sentence has been suspended until October 14 to allow time for any appeal to the Supreme Court. During that time, the disputed tariffs remain in effect.
In his message on Truth Social, the president called the judges' decision"highly politicized." According to him, if the tariffs were eliminated,"it would be a total catastrophe for the country," which would be "destroyed." (See also: End of cheap shipping: Millions of packages to the US will face high tariffs. ) The United States Court of International Trade ruled in May that Trump had exceeded his authority with global tariffs applied across the board. Several challenges have been filed against the tariffs, which Trump invoked by citing emergencies.
In a supplemental filing just hours before the appeals court issued its decision, Trump Cabinet officials argued that declaring the global tariffs illegal and blocking them would harm U.S. foreign policy and national security.
"Such a ruling would threaten broader U.S. strategic interests at home and abroad, likely leading to retaliation and the unraveling of agreements reached by foreign trading partners," wrote Commerce Secretary Howard Lutnick. Meanwhile, Treasury Secretary Scott Bessent warned that suspending the tariffs"would lead to a dangerous diplomatic embarrassment." If the tariffs are ultimately ruled illegal, the companies could potentially seek refunds.
