Appeals Court strikes down Trump’s tariffs, but leaves them in place

A federal appeals court on Friday struck down most of the tariffs President Donald Trump imposed on global imports, ruling that he overstepped his authority under the 1977 International Emergency Economic Powers Act (IEEPA).

In a 7–4 decision, the court said Congress, not the president, holds the core power to impose taxes, including tariffs. The ruling upholds a lower-court decision but leaves the tariffs in effect until October, allowing the administration to appeal to the Supreme Court.

Details of the tariffs
The tariffs, introduced in April and labeled “reciprocal tariffs,” imposed a baseline 10% levy on nearly all US trading partners, with higher rates on countries like Canada, China, and Mexico. 

They sparked market volatility and backlash from foreign governments. 

According to the Tax Foundation, the tariffs account for about 70% of projected tariff revenue by 2026.

Trump defended the policy on Truth Social, calling the ruling partisan and insisting the tariffs remain in effect. Other tariffs on autos, steel, aluminum, and copper remain unaffected. 

This ruling could reshape US trade policy if upheld.