Overview

• The U.S. Court of Appeals for the Federal Circuit, in a 7–4 decision, found IEEPA-based tariffs unlawful but kept them in effect until Oct. 14 to allow a petition to the Supreme Court.
• Judges concluded that the 1977 emergency law does not expressly permit tariffs or taxes, emphasizing that Congress holds the constitutional authority over duties.
• The ruling reaches broad, country-specific levies rolled out since April, raising questions about reciprocal-rate arrangements with the EU, Japan and South Korea and about heightened duties on China, Canada and Mexico.
• If ultimately upheld, the decision could trigger large refunds, with tariff receipts totaling about $159 billion by July according to figures cited in the coverage.
• Tariffs imposed under separate national-security statutes—such as those on steel, aluminum and autos—remain unaffected, as Trump denounced the decision on Truth Social and said he will appeal to the Supreme Court.