Overview

• The U.S. Court of Appeals for the Federal Circuit ruled 7–4 that President Trump exceeded his authority by invoking the 1977 IEEPA to levy sweeping tariffs.
• The panel largely affirmed a May ruling by the U.S. Court of International Trade and concluded the statute does not explicitly authorize tariffs, duties or similar taxes.
• The court stayed its order until Oct. 14, leaving the duties in place while the administration prepares a Supreme Court appeal, and Trump declared the tariffs remain in effect.
• The case covers the April global 'reciprocal' tariffs and a February package tied to trafficking and immigration aimed at China, Canada and Mexico, but does not touch measures under other laws such as steel and aluminum.
• Justice Department filings warned of significant fiscal exposure, including potential duty refunds and lost revenue, and the ruling injects new uncertainty into talks with key partners like the European Union and Japan.