Overview

• An 11-judge Federal Circuit panel held that most tariffs imposed under the International Emergency Economic Powers Act exceed presidential authority and are invalid as contrary to law.
• The court kept the tariffs in force through Oct. 14 to allow the administration to seek emergency review, with President Trump and the White House vowing to appeal to the Supreme Court.
• The ruling covers Trump’s April “reciprocal” tariffs and separate “trafficking” tariffs on China, Canada, and Mexico, but does not affect levies imposed under other statutes such as steel and aluminum duties.
• Judges directed the case back to the Court of International Trade after the stay to reassess the scope of any relief in light of recent Supreme Court limits on nationwide injunctions.
• The consolidated challenges were brought by five small businesses and 12 states, and government filings warned that unwinding the tariffs could spur significant refund claims for previously collected duties.