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2h ago

Appeals Court Says Trump’s IEEPA Tariffs Are Illegal, Stays Ruling for Potential Supreme Court Appeal

Judges said Congress holds the taxing power, with IEEPA containing no grant to impose tariffs.

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US appeals court rules most Donald Trump tariffs unlawful
U.S. President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., U.S., April 2, 2025. REUTERS/Carlos Barria/File Photo
FILE PHOTO: U.S. President Donald Trump attends a cabinet meeting at the White House in Washington, D.C., U.S., August 26, 2025. REUTERS/Jonathan Ernst/File Photo

Overview

  • The U.S. Court of Appeals for the Federal Circuit ruled 7–4 that most tariffs imposed under the International Emergency Economic Powers Act exceed presidential authority and affirmed a lower-court decision.
  • The court left the tariffs in place through October 14 to allow the administration to seek Supreme Court review, and President Trump vowed to appeal.
  • The decision consolidated challenges from five small businesses and a coalition of 12 states to the April “reciprocal” tariffs and separate trafficking-related tariffs.
  • The majority emphasized that IEEPA does not mention tariffs, duties or taxes and underscored that tariff authority resides with Congress.
  • Tariffs imposed under other statutes, such as Section 232 duties on steel and aluminum, are unaffected, while questions persist about potential duty refunds if the IEEPA tariffs ultimately fall.