Overview

• In a 7–4 decision, the Federal Circuit concluded the president exceeded his authority by using the 1977 IEEPA to levy broad, indefinite import taxes, largely affirming a May trade-court ruling.
• The ruling covers the April “reciprocal” tariffs and fentanyl-linked measures but does not affect sector-specific duties imposed under other statutes, including steel, aluminum and autos.
• The White House is preparing to seek Supreme Court review, as Treasury Secretary Scott Bessent expresses confidence in upholding the policy and outlines fallback options such as Section 338 and other trade authorities.
• Customs receipts tied to the tariffs totaled roughly $142–$159 billion through July, while the Justice Department cautioned that invalidation could force refunds and strain federal finances.
• Companies and U.S. trading partners are reassessing negotiations and pricing strategies as uncertainty grows over informal deals, potential renegotiations and the durability of any replacement measures.