In a landmark decision with sweeping implications for U.S. trade policy and executive authority, the U.S. Court of Appeals for the Federal Circuit has ruled against former President Donald Trump’s use of emergency powers to impose broad tariffs on foreign imports.
The 7–4 ruling affirms a lower court’s decision that Trump’s executive orders—issued under the International Emergency Economic Powers Act (IEEPA)—exceeded the scope of authority granted by Congress. The court concluded that while IEEPA allows the president to regulate imports during national emergencies, it does not authorize the imposition of sweeping, indefinite tariffs without explicit congressional approval.
Trump’s tariff packages, dubbed the “Trafficking Tariffs” and “Reciprocal Tariffs,” levied duties ranging from 10% to 125% on imports from countries including Mexico, Canada, China, and India. These measures were justified by the administration as responses to drug trafficking, trade imbalances, and national security threats.
The court emphasized that tariffs are a core legislative power and that the president’s actions represented a “vast economic and political significance” requiring clear congressional authorization. “Reading the phrase ‘regulate … importation’ to include imposing these tariffs is a wafer-thin reed on which to rest such sweeping power,” the majority opinion stated.
The decision does not take immediate effect, as the court has delayed its mandate until October 14, allowing the Trump administration time to appeal to the Supreme Court. In response, Trump posted on Truth Social, calling the ruling “incorrect” and warning that it could “literally destroy the United States of America” if upheld.
The ruling follows lawsuits filed by small businesses and a coalition of 12 states, which argued that the tariffs disrupted supply chains, inflated costs, and violated constitutional principles of separation of powers.