Federal Appeals Court Rules Most Trump Tariffs Illegal

A federal appeals court on Friday struck down most of President Donald Trump’s tariffs, ruling that the administration unlawfully relied on emergency powers to impose sweeping trade measures without congressional approval.

In a 7–4 decision, the U.S. Court of Appeals for the Federal Circuit upheld a lower court ruling from the Court of International Trade, which found that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose broad, across-the-board tariffs. The court allowed the tariffs to remain in place until October 14 while the administration prepares an expected appeal to the Supreme Court.

The decision leaves intact narrower tariffs targeted at specific sectors, such as steel and aluminum, but invalidates the majority of the global tariff actions announced earlier this year.

President Trump blasted the ruling, calling it “a disgraceful decision that weakens America.” He added: “These tariffs are saving American jobs, rebuilding our industries, and making other countries treat us fairly. We will take this fight to the Supreme Court — and we will win.”

Treasury Secretary Scott Bessent warned that striking down the tariffs could undermine U.S. credibility. “If our courts say these tariffs are illegal, it will embarrass the United States on the world stage,” he said.

Nobel Laureate Trade Economist Paul Krugman, by contrast, argued the embarrassment falls on the administration. “It won’t embarrass America. It will embarrass Trump and Bessent. If anything, it might reassure the rest of the world that some vestige of rule of law yet remains in this nation,” he said.

Krugman added: “We kind of knew this was coming, but the reality still comes as a shock. Just saying ‘I am the Tariff Man, and here are my tariffs’ isn’t OK.”

The case underscores the constitutional principle that authority to set tariff policy rests with Congress. Should the Supreme Court decline to intervene or uphold the ruling, importers may seek refunds on duties already collected.