Overview
- In a 7–4 ruling, the court found the International Emergency Economic Powers Act does not authorize the president to impose tariffs, a power it said belongs to Congress.
- The mandate is stayed to October 14, so the challenged tariffs continue for now as the administration prepares to seek Supreme Court review, which Justice Department leader Pam Bondi said it will pursue.
- The decision targets broad, country-level duties announced since April, such as the 15% rate on most EU goods effective August 7, but leaves sector-specific measures on steel, aluminum and autos, and earlier China tariffs under other laws, untouched.
- The ruling largely upholds an earlier trade court decision after lawsuits by about a dozen U.S. states arguing that levying taxes and duties is a congressional prerogative.
- The outcome injects uncertainty into recently negotiated arrangements and tariff revenues, with officials warning of diplomatic fallout and possible refund exposure if the levies ultimately fail in court.