A federal appellate court upheld a lower-court ruling that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were illegal. The ruling leaves the IEEPA tariffs in place through at least Oct. 14 but does not touch Section 232 or Section 301 tariffs. Former officials and allies framed the decision as politically motivated and warned of dire consequences if the ruling stands. Tariffs have become a significant revenue source, with roughly $31 billion collected in August and an estimate that the ruling could erase 71% of the policy's revenue impact, cutting receipts substantially through 2034. The administration may seek Supreme Court review soon.
Late Friday night, a federal appellate court upheld a lower-court ruling that Trump's sweeping global tariffs under the International Emergency Economic Powers Act (IEEPA) were illegal. Trump quickly warned the ruling could "literally destroy the United States" and suggested a Supreme Court appeal was coming. The decision allows the IEEPA tariffs to remain in place through at least Oct. 14. It does not affect so-called Section 232 tariffs (like steel and aluminum) or Section 301 national tariffs (like the levies imposed on China in Trump's first term).
What they're saying: " This was weaponized partisan injustice at its worst. Politicians in black robes," Navarro said on Fox's "Sunday Morning Futures" of the court's 7-4 decision. "If we lose the case, President Trump is right - it will be the end of the United States," he said Navarro insisted that both fentanyl flows from overseas and trade deficits were emergencies that had to be addressed by tariffs, and that the duties could end quickly if the drugs stopped coming and trade balanced out.
By the numbers: Tariffs have quickly become a massive source of federal revenue - around $31 billion in August alone, representing just over 8% of all cash deposits to the U.S. Treasury for the month. The Committee for a Responsible Federal Budget estimated that the ruling, if it stands, would wipe out 71% of the revenue impact of Trump's tariff policy, reducing receipts by $2 trillion through fiscal 2034. What to watch: How quickly the Trump administration moves to bring the case to the Supreme Court,
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