Trump's global tariffs are illegal, federal court rules. Here's why they'll remain in place.

"A federal appeals court on Friday ruled that President Donald Trump's sweeping tariff plan was illegal - but overturned the lower trade court's injunction blocking them, allowing them to stay in place for now. A 7-4 ruling from the appeals court ruled that Trump overstepped his executive power to rewrite trade policy. The court wrote in its decision that the president does not have the authority to impose tariffs outright through the International Emergency Economic Powers Act, or IEEPA, as the administration has said."

""Contrary to the Government's assertion, the mere authorization to 'regulate' does not in and of itself imply the authority to impose tariffs," the ruling reads. "The power to 'regulate' has long been understood to be distinct from the power to 'tax.'" In vacating the lower court's injunction, the appeals court will allow Trump's tariffs to remain in place through mid-October, giving both parties in the case time to ask the Supreme Court to take up the appeal."

A federal appeals court held that President Donald Trump's tariff plan was illegal, concluding the president exceeded executive authority under the International Emergency Economic Powers Act. The court issued a 7-4 decision finding IEEPA does not authorize imposition of tariffs and distinguishing regulatory power from taxing power. The appeals court vacated a lower court injunction, allowing the tariffs to remain in place through mid-October while the parties may seek Supreme Court review. The likely appeal would ask the Supreme Court to define the boundaries of executive trade authority. White House representatives did not immediately comment.

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