A federal appeals court on Friday ruled that most of former President Donald Trump’s global tariffs are illegal, delivering a significant setback to one of his signature trade policies.
In a 7-4 decision, the U.S. Court of Appeals for the Federal Circuit found that Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) when he imposed sweeping tariffs, including his so-called “reciprocal tariffs.”
“The core Congressional power to impose taxes such as tariffs is vested exclusively in the legislative branch,” the court said, adding that the tariffs were “unbounded in scope, amount and duration.”
The ruling, in the case V.O.S. Selections v. Trump, marks Trump’s second loss in court over the issue. The judges paused the decision until October 14, allowing time for an appeal to the Supreme Court.
Trump dismissed the ruling as “Highly Partisan” and insisted the Supreme Court would uphold his policies. “If these tariffs ever went away, it would be a total disaster for the country,” he wrote on Truth Social.
The case was brought by a coalition of states and small businesses, who argued that the tariffs caused financial harm and violated constitutional limits.
“This decision protects American businesses and consumers from unlawful tariffs,” said Jeffrey Schwab, attorney for the plaintiffs.
While Trump’s legal team argued the tariffs were justified under national emergency powers, the court sided with critics who said the measures bypassed Congress and placed undue burdens on trade.
The White House confirmed the tariffs remain in place for now, pending a possible Supreme Court review.
