A federal appeals court late Friday ruled that most of President Donald Trump's tariffs are illegal, a big blow to his economic agenda. But the duties will stay in force for now.
The U.S. Court of Appeals for the Federal Circuit upheld a May ruling by the Court of International Trade that Trump exceeded his authority by invoking an emergency law, the International Emergency Economic Powers Act, or Ieepa.
The 7-4 ruling strikes down baseline tariffs of 10% on virtually all countries as well as bigger duties on countries such as Canada, China and Mexico. It does not affect sector-related duties on steel, copper and more.
The judges sent the case back to the lower court to determine if the ruling applied to everyone affected by the Trump tariffs or just the specific parties in the case. The panel left the Trump tariffs in question in force until Oct. 14, giving time for the White House to appeal to the Supreme Court.
If Trump ends up losing, he could probably replicate many of the struck-down tariffs using other established trade authority. But it would extend uncertainty for several months. Also, the U.S. government might have to reimburse tens of billions of dollars to importers who paid the affected Trump tariffs.
