A federal appeals court has ruled that most of the tariffs imposed by former President Donald Trump under the 1977 International Emergency Economic Powers Act (IEEPA) are illegal. In a 7–4 decision, the U.S. Court of Appeals for the Federal Circuit upheld a lower court’s judgment, finding that IEEPA grants the president authority over economic sanctions—not broad import duties. The court emphasized that when Congress intends to delegate tariff powers, it does so explicitly—not through emergency laws that lack references to duties or taxes. 

What Tariffs Are Affected—and What Aren’t

The ruling voids sweeping IEEPA-based tariffs, including a 10% baseline on most imports and heavier duties on goods from China, Canada, and Mexico—including the “liberation day” tariffs ostensibly aimed at deterring fentanyl trafficking. However, sector-specific levies—such as those on steel, aluminum, automobiles, and copper imposed under separate national security laws—remain intact and unaffected by the decision. 

Legal Authority and Separation of Powers

Central to the court’s decision is the constitutional principle that tax and tariff powers reside with Congress—not the executive branch. The court ruled that IEEPA does not authorize such sweeping trade measures, which fundamentally recast U.S. trade policy. The decision also cited the “major questions doctrine,” which requires clear congressional authorization for decisions with broad economic or political impact. 

What Happens Next: Stay and Appeal

Tariffs challenged under IEEPA will remain in effect through mid-October to allow time for the administration to seek review in the Supreme Court. The appeals court has issued a temporary stay, preserving the status quo while proceedings unfold.  On remand, lower courts will need to apply the appeals court ruling, which could lead to permanent invalidation. Ultimately, the Supreme Court may decide whether to hear the case—often prompted when circuit courts address major statutory or constitutional questions. 

Consumer and Economic Impact

If upheld, the ruling could bring significant relief to businesses and consumers, especially small importers who currently face steep, flat-rate duties regardless of product value. Importers may be entitled to refunds for past tariffs collected under now-invalidated authority. However, tariffs under other legal frameworks will continue to apply, preserving some trade barriers and uncertainties. 

Implications for Executive Power

The case sets a key precedent limiting unilateral presidential power to impose economic sanctions or trade barriers absent explicit congressional authorization. It underscores the judiciary’s role in maintaining constitutional checks and balances—even in the face of national security claims. Unless the Supreme Court reverses it, this ruling may curtail the administration’s ability to invoke emergency powers for sweeping economic actions in the future.