Overview

• The appeals court held that the International Emergency Economic Powers Act does not authorize the April “reciprocal” tariffs or the February duties on imports from China, Canada and Mexico.
• The ruling does not affect tariffs implemented under other laws, including the steel and aluminum measures.
• The decision resolves two cases brought by five small businesses and a coalition of 12 Democratic-led states.
• The court rejected the Justice Department’s argument that IEEPA permits broad tariff increases as a way to “regulate” imports, emphasizing Congress’s constitutional control over tariffs.
• The administration is expected to seek U.S. Supreme Court review as parallel challenges continue in other courts.