A US appeals court in Washington, DC ruled on Friday that the majority of tariffs imposed by President Donald Trump are largely unconstitutional.
The court found that while the International Emergency Economic Powers Act grants the President broad authority during national emergencies, it does not explicitly authorize the imposition of tariffs or taxes.
In a 7-4 ruling, the court allowed the tariffs to remain in effect until October 14, giving the Trump administration time to appeal the decision to the Supreme Court.
The ruling largely upheld a May decision by a federal trade court in New York, which had declared the “Liberation Day” tariffs as exceeding presidential authority and ordered them halted. The US Attorney General’s office promptly announced it would appeal the ruling, news agencies reports.
Trump criticized the ruling as partisan and “incorrect,” stating on his Truth Social platform that removal of the tariffs would be a “total disaster” and could “literally destroy the United States of America.”
The president has used tariffs as leverage against exporting countries and warned that striking them down could trigger mass refunds of import taxes, significantly impacting the US Treasury. Tariff revenue had reached $159 billion by July, double the amount from the previous year.
The appeals court noted that Congress likely did not intend to grant unlimited tariff authority under the International Emergency Economic Powers Act.
Legal experts said the ruling safeguards American businesses and consumers from “uncertainty and harm” caused by the unlawful tariffs. The decision does not affect other tariffs imposed under different legal authorities, such as those on steel and aluminum imports.
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