A federal appeals court found that President Trump's blanket tariff policy exceeded his authority under the International Emergency Economic Powers Act, ruling seven to four against universal tariffs imposed on all US trading partners. The court noted the statute grants broad emergency powers but does not explicitly authorize imposing tariffs, duties, or taxes. The administration is expected to seek Supreme Court review, and the appeals court allowed the tariffs to remain in effect until October 14 pending that appeal. The May decision with an injunction originated in the US Court of International Trade and was one of multiple legal challenges. Experts note trade deficits are not necessarily harmful.
A United States appeals court has declared President Donald Trump's blanket tariff policy illegal, but it stopped short of pausing the wide-ranging import taxes altogether. On Friday, the Court of Appeals for the Federal Circuit in Washington, DC, largely upheld a decision in May that found Trump had overstepped his authority in imposing universal tariffs on all US trading partners.
Trump had invoked the International Emergency Economic Powers Act (IEEPA) to justify the move, claiming that trade deficits with other countries constituted a national emergency. But the appeals court questioned that logic in Friday's ruling, ruling seven to four against the blanket tariffs. The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, the court wrote.
But none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax. The Trump administration is expected to appeal to the Supreme Court, and the appeals court therefore said his tariff policy could remain in place until October 14. That was a departure from the May ruling, which included an injunction to immediately halt the tariffs from taking effect.
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