Overview

• The U.S. Court of Appeals for the Federal Circuit ruled 7–4 that the International Emergency Economic Powers Act does not authorize the president to impose tariffs or taxes.
• The court left the levies in effect until Oct. 14 to allow time for a petition to the Supreme Court.
• The decision largely upholds a May finding by the Court of International Trade that the president exceeded his authority.
• The case covers the global “reciprocal” tariffs and a separate February package on Canada, China and Mexico, and it does not affect tariffs imposed under other statutes such as the steel and aluminum duties.
• If the ruling ultimately stands, the government could face refund claims for duties collected, as Trump rejects the decision and says the tariffs remain in force pending appeal.