A divided U.S. appeals court ruled Friday that most of President Donald Trump’s tariffs are illegal, a decision that undercuts his use of the levies as a central tool of his international economic policy. The court stayed the ruling long enough for the Trump administration to pursue an appeal with the Supreme Court, allowing tariffs to remain in place through October 14.
The 7-4 decision by the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., covered the so-called reciprocal tariffs he imposed as part of his trade agenda in April, as well as a separate set of tariffs enacted in February targeting China, Canada and Mexico. The majority was composed of six judges appointed by Democratic presidents and one appointed by a Republican, while the dissenters included two appointees of Democratic presidents and two appointed by Republicans. The ruling does not touch tariffs issued under other authorities, such as the steel and aluminum duties, which trumped different legal channels.
The decision arrives amid broader legal contestations surrounding Trump’s economic policy. It comes as another high-stakes battle looms over the independence of the Federal Reserve, a matter that also appears headed for the Supreme Court and could set a landmark precedent this year regarding the scope of executive power over economic policy.
Trump responded on Truth Social, denouncing the court as highly partisan and warning that removing tariffs would be a “total disaster” for the country, even as he expressed confidence that the Supreme Court would ultimately tilt the balance in his favor. He argued that tariffs would ultimately benefit the United States, with help from the Supreme Court.
The court’s ruling reinforces the ongoing tension between executive actions and congressional authority in trade policy. While the decision preserves a temporary path to appeal, it underscores the unsettled legal framework underpinning Trump’s tariff strategy and its ripple effects on markets and manufacturers.
For businesses, the immediate implication is continued tariff volatility and a potential recalibration of supply chains as firms monitor how the disputes unfold through the appeals process and possible Supreme Court review. The Oct. 14 deadline provides a window for negotiators and policymakers to seek clarity and, ideally, reduce disruption through settlements or adjustments.
Overall, the ruling contributes to a longer-running debate over the balance of power in U.S. economic policy, offering a potentially clarifying moment about what kinds of presidential actions can or cannot be sustained in the tariff domain. It also leaves room for cautious optimism that attentive dialogue with trading partners could yield more stable and innovative outcomes for American manufacturing in the longer term.
Summary: A federal appeals court found most of Trump’s tariffs illegal, while keeping them in place through mid-October to allow Supreme Court review. The decision highlights ongoing legal battles over presidential authority in economic policy and adds to a broader, high-stakes debate about the future of U.S. trade powers. Progress on this issue could shape manufacturing resilience and international relations in the months ahead, with markets watching closely as the courts and the administration navigate appeals and potential settlements.
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