Overview

• The U.S. Court of Appeals for the Federal Circuit ruled 7–4 that the International Emergency Economic Powers Act does not authorize a president to impose reciprocal tariffs, stressing that tariff authority rests with Congress.
• The court kept the duties in place through October 14 under a stay, leaving the measures in effect while further appeals proceed.
• President Trump said he will seek a rapid Supreme Court ruling to restore his tariff authority and warned of economic harm if the duties fall, and Treasury Secretary Scott Bessent voiced confidence the policy will be upheld.
• The case was brought by a coalition of small businesses and several states challenging tariffs imposed under IEEPA, including reciprocal measures and levies tied to the administration’s fentanyl rationale.
• If the ruling stands, the government could have to unwind the tariffs and refund roughly $96 billion collected since April, according to published estimates, while tariffs imposed under other laws such as Section 232 are not affected.