A U.S. appeals court has dealt a legal blow to President Donald Trump, ruling that many of his sweeping global tariffs were illegal. But don’t cancel your trade alerts just yet — the tariffs will remain in place until mid-October, giving Trump a window to take the fight to the Supreme Court.
The 7-4 decision by the Court of Appeals for the Federal Circuit agreed with a lower court that Trump had overstepped his powers by using emergency economic laws to impose wide-ranging duties. While the court said the tariffs shouldn’t have been imposed, it temporarily allowed them to continue, giving the president some breathing room.
Trump responded quickly on his social media platform, Truth Social, insisting the tariffs would survive the legal challenge. “The appeals court incorrectly said that our tariffs should be removed, but they know the United States will win in the end,” he wrote, promising to take the matter all the way to the Supreme Court.
Since returning to the presidency in January, Trump has leaned on the International Emergency Economic Powers Act (IEEPA) to impose tariffs on nearly all U.S. trading partners. Countries like Mexico, Canada, China, and the European Union have faced even higher rates. For Trump, these tariffs are more than trade tools — they are a key part of his economic and foreign policy strategy.
Critics warn the approach risks sparking a diplomatic headache. Treasury Secretary Scott Bessent said suspending the tariffs could cause a “dangerous diplomatic embarrassment,” while Commerce Secretary Howard Lutnick warned that striking them down might unravel negotiations and invite retaliation from foreign partners.
The court stressed that, while the president has broad powers during national emergencies, the law does not explicitly authorize him to impose tariffs or taxes. For now, billions of dollars collected from trading partners remain in place — but the big question is whether the Supreme Court will back Trump’s strategy.
