'No power to impose': US appeals court rules Trump’s global tariffs illegal but allows them to stay

A federal appeals court on Friday (local time) ruled that US President Donald Trump’s use of emergency powers to impose tariffs was unlawful, a decision that could force his administration to repay billions in duties.

In a 7–4 ruling, the US Court of Appeals for the Federal Circuit found Trump had overstepped his authority by invoking emergency economic powers to levy sweeping tariffs.

The judgment upheld an earlier court finding but allowed the duties to remain in place until mid-October while the case proceeds.

Trump vowed to challenge 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,” he wrote on Truth Social, adding he would appeal “with the help of the United States Supreme Court.”

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The decision is a major setback for Trump, who has wielded tariffs as a central economic tool. It raises questions over agreements with the European Union, Japan, South Korea and other partners on reducing “reciprocal” tariffs, and also strikes down duties imposed on China, Canada and Mexico to pressure them over fentanyl shipments.

The court stressed that Congress never gave the president sweeping powers to impose such duties. “We conclude Congress … did not give the president wide-ranging authority to impose tariffs of the kind Trump imposed in his sweeping executive orders,” the majority wrote.

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The ruling will not take effect until 14 October, giving Trump time to appeal to the Supreme Court. On social media, he denounced the decision as “highly partisan” and warned that overturning the tariffs would be “a total disaster for the Country” and “make us financially weak.”

“Now, with the help of the United States Supreme Court, we will use them to the benefit of our Nation, and Make America Rich, Strong, and Powerful Again!” he declared.

The case arose from challenges by small importers and several Democratic-led states. The judges clarified: “We are not addressing whether the President’s actions should have been taken as a matter of policy … Rather, the only issue we resolve on appeal is whether the Trafficking Tariffs and Reciprocal Tariffs imposed by the Challenged Executive Orders are authorised by IEEPA. We conclude they are not.”