Appeals Court Strikes Down Trump’s Tariff Expansion, Setting Stage for Supreme Court Fight

Former President Donald Trump’s sweeping tariff strategy suffered a major setback on Friday after the U.S. Court of Appeals for the Federal Circuit ruled that his administration had exceeded its authority in imposing additional import taxes.

According to the Associated Press, the ruling specifically targeted tariffs Trump imposed in April on several U.S. trading partners, as well as those introduced earlier in the year on China, Mexico, and Canada. The decision does not immediately cancel the tariffs but gives the administration until October to appeal to the Supreme Court.

If the nation’s highest court upholds the ruling, the U.S. government may be forced to refund billions collected from import duties. Analysts warn the decision could also complicate ongoing trade negotiations and weaken Trump’s political leverage heading into election season.

Tariffs Remain in Effect—for Now

The appeals court clarified that Trump’s reciprocal tariff will stay in place until October 14, meaning importers must continue paying duties on goods from China, Canada, and Mexico.

However, after that deadline, the tariffs may no longer be legally enforceable. Importantly, the ruling does not affect tariffs put in place by earlier administrations, such as those on steel, aluminum, and copper.

Trump’s Defense and the Court’s Pushback

Trump has consistently defended his tariff as necessary to protect national security and rebalance trade relationships. His legal justification relied on the International Emergency Economic Powers Act (IEEPA), which allows the president to impose economic measures during national emergencies.

But the court pushed back sharply. In its opinion, the judges wrote that the IEEPA “did not give the president wide-ranging authority to impose tariffs,” noting that the law makes no mention of tariffs or related powers and lacks the procedural safeguards that would limit executive overreach.

The administration is expected to seek a Supreme Court review before the October deadline. Should the ruling stand, not only could billions in revenue be at stake, but Trump’s broader argument for expansive presidential authority in economic matters could be dealt a significant blow.