Overview

• In a 7–4 decision, the Federal Circuit held that the International Emergency Economic Powers Act does not authorize sweeping, long‑duration tariffs, largely affirming a May ruling by the U.S. Court of International Trade.
• The court delayed its mandate until October 14, so the contested reciprocal and fentanyl‑linked tariffs remain in force as the administration seeks Supreme Court review.
• Tariffs imposed under other authorities are unaffected, including sectoral duties on steel, aluminum and autos and earlier Section 301 measures.
• Treasury Secretary Scott Bessent said an appeal is underway and a backup plan exists, while analysts expect possible pivots to Section 122, Section 301 or expanded sectoral actions if IEEPA‑based duties are struck down.
• Customs receipts have surged to roughly $142 billion by July, raising the risk of refunds to importers if the levies are invalidated and prompting U.S. trading partners to reassess informal deals made to avoid higher duties.