Overview

• In a 7–4 decision, the Federal Circuit largely affirmed a May trade-court ruling that IEEPA does not authorize tariffs and emphasized the need for clear congressional approval for measures of vast economic significance.
• The ruling targets Trump’s April “reciprocal” global tariffs and separate fentanyl-related duties on China, Canada and Mexico, but it does not affect levies issued under other statutes such as the steel and aluminum tariffs.
• The court left the duties in force through October 14 to allow the administration to seek Supreme Court review, and the White House said it will appeal.
• The consolidated cases were brought by five small businesses and 12 Democratic-led states, and the panel told the trade court to revisit whether any injunction should reach beyond the parties to the suits.
• If the tariffs are ultimately struck down, the government could face substantial refund claims and uncertainty for trade agreements, with cabinet officials warning of diplomatic consequences from unwinding the measures.