Overview

• In a 7–4 decision, the Federal Circuit largely affirmed the trade court’s view that the International Emergency Economic Powers Act does not permit the president to impose tariffs or other tax-like duties.
• The court kept the levies in place through October 14 to allow the administration to seek U.S. Supreme Court review, with the White House vowing to pursue an appeal.
• The ruling covers Trump’s April “reciprocal” global tariffs and separate February duties on China, Canada and Mexico, but it does not affect sector-specific measures imposed under other laws such as steel and aluminum tariffs.
• Judges directed the lower court to revisit the breadth of any relief in light of limits on nationwide injunctions, leaving questions about refunds and how relief would apply beyond the parties.
• The cases were brought by five small businesses and a coalition of 12 states, and the decision raises economic and diplomatic uncertainty as trading partners assess deals reached under the contested regime.