Overview

• In a 7-4 decision, the Federal Circuit affirmed that the International Emergency Economic Powers Act does not authorize the president to impose tariffs or taxes.
• The ruling covers Trump’s April “reciprocal” tariffs and separate February tariffs on China, Canada, and Mexico challenged by five small businesses and 12 states.
• The court let the duties remain in effect through mid-October, and it did not disturb sector-specific tariffs imposed under other laws such as those on steel and aluminum.
• President Trump and the White House said they will appeal, with Trump denouncing the ruling and insisting the tariffs stay in force for now.
• Administration filings warned of diplomatic fallout and potential large refund claims if the tariffs are ultimately struck down, and the lower court was told to revisit the scope of any injunction.