Trump rages at appeals court after major ruling on tariffs that sets up Supreme Court battle

Washington DC - A US appeals court on Friday ruled that many of President Donald Trump's tariffs, which have upended global trade, were illegal – but allowed them to remain in place for now, giving him time to take the fight to the Supreme Court.

President Donald Trump does not have the authority to impose his sweeping tariff regime by invoking the International Emergency Economic Powers Act, a federal appeals court ruled.
President Donald Trump does not have the authority to impose his sweeping tariff regime by invoking the International Emergency Economic Powers Act, a federal appeals court ruled.  © MANDEL NGAN / AFP

The 7-4 ruling by the US Court of Appeals for the Federal Circuit affirmed a lower court's finding that Trump had exceeded his authority in tapping emergency economic powers to impose wide-ranging duties.

But the judges allowed the tariffs to stay in place through mid-October and Trump swiftly made clear he would put the time to use.

The appeals court "incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end," he said in a statement on his Truth Social platform lashing out at the ruling.

Trump lashes out after judge makes significant ruling on Utah congressional map
Donald Trump Trump lashes out after judge makes significant ruling on Utah congressional map
Pete Hegseth orders painting of confederate general with slave to be reinstalled at military academy
Pete Hegseth Pete Hegseth orders painting of confederate general with slave to be reinstalled at military academy

He added that he would fight back "with the help of the United States Supreme Court."

The decision marks a blow to the president, who has wielded duties as a wide-ranging economic policy tool.

It could also cast doubt over deals Trump has struck with major trading partners such as the European Union, and raised the question of what would happen to the billions of dollars collected by the US since the tariffs were put in place if the conservative-majority Supreme Court does not back him.

Friday's case, however, does not deal with sector-specific tariffs that the Trump administration has also imposed on steel, aluminum, autos and other imports.

What the ruling says – and what it doesn't

Trump vowed to challenge the ruling at the Supreme Court, where conservative justices hold a 6-3 majority.
Trump vowed to challenge the ruling at the Supreme Court, where conservative justices hold a 6-3 majority.  © REUTERS

Since returning to the presidency in January, Trump has invoked the International Emergency Economic Powers Act (IEEPA) to impose "reciprocal" tariffs on almost all US trading partners, with a 10% baseline level and higher rates for dozens of economies.

He has invoked similar authorities to slap separate tariffs hitting Mexico, Canada, and China.

The Court of International Trade had ruled in May that Trump overstepped his authority with across-the-board global levies, blocking most of the duties from taking effect, but the appeals court later put the ruling on hold to consider the case.

MAGA Rep. Mike Collins caught on hot mic making big admission on Trump and Epstein files
Politicians MAGA Rep. Mike Collins caught on hot mic making big admission on Trump and Epstein files
Trump sends warships to Venezuelan in alarming escalation of pressure on Maduro
Donald Trump Trump sends warships to Venezuelan in alarming escalation of pressure on Maduro

Friday's ruling noted that "the statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax."

It added that it was not addressing if Trump's actions should have been taken as a matter of policy or deciding whether IEEPA authorizes any tariffs at all.

Instead, it sought to answer whether Trump's "reciprocal" tariffs and those imposed over trafficking were authorized, with the document noting: "We conclude they are not."

Trump administration fears "diplomatic embarrassment"

In a supplementary filing just hours before the appeals court released its decision, Trump cabinet officials argued that ruling the global tariffs illegal and blocking them would hurt US foreign policy and national security.

"Such a ruling would threaten broader US strategic interests at home and abroad, likely lead to retaliation and the unwinding of agreed-upon deals by foreign-trading partners," wrote Commerce Secretary Howard Lutnick.

Lutnick added that they could also "derail critical ongoing negotiations" with partners.

Treasury Secretary Scott Bessent, meanwhile, warned that suspending the effectiveness of tariffs "would lead to dangerous diplomatic embarrassment."

Several legal challenges have been filed against the tariffs Trump invoked citing emergencies. If these tariffs are ultimately ruled illegal, companies could possibly seek reimbursements.

Cover photo: MANDEL NGAN / AFP

More on Donald Trump: