The United States Court of Appeals for the Federal Circuit on Friday rejected President Trump’s authority to impose sweeping tariffs in a 7-4 decision.
“The Government appeals a decision of the Court of International Trade setting aside five Executive Orders that imposed tariffs of unlimited duration on nearly all goods from nearly every country in the world, holding that the tariffs were not authorized by the International Emergency Economic Powers Act (IEEPA), 50 U.S.C. § 1701 et seq. Because we agree that IEEPA’s grant of presidential authority to “regulate” imports does not authorize the tariffs imposed by the Executive Orders, we affirm,” the Federal Appeals Court said.
BREAKING: Federal appeals court rejects Trump’s sweeping tariff moves. 7-4. Doc: https://t.co/KO5HVOrhLd
— Josh Gerstein (@joshgerstein) August 29, 2025
A court battle over President Trump’s tariffs is playing out in a district court and the Court of International Trade.
In May, The Court of International Trade in New York said President Trump exceeded his authority to impose tariffs under the International Emergency Economic Powers Act of 1977 (IEEPA).
“The order halts Trump’s 30% tariffs on China, his 25% tariffs on some goods imported from Mexico and Canada, and the 10% universal tariffs on most goods coming into the United States. It does not, however, affect the 25% tariffs on autos, auto parts, steel or aluminum, which were subject to Section 232 of the Trade Expansion Act – a different law than the one Trump cited for his broader trade actions,” CNN reported earlier this year.
Earlier this year the federal appeals court temporarily reinstated President Trump’s tariffs after the Court of International Trade in New York said President Trump exceeded his authority to impose tariffs under the International Emergency Economic Powers Act of 1977 (IEEPA).
However, after further consideration, the same federal appeals court in June ruled that President Trump’s sweeping tariffs could remain in effect while the Trump Administration mounted a legal challenge.
The federal Circuit Court heard arguments on the case on July 31 and the tariffs remained in effect until Friday’s decision.
President Trump responded in a Truth Social post.
“ALL TARIFFS ARE STILL IN EFFECT! Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end. If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak, and we have to be strong. The U.S.A. will no longer tolerate enormous Trade Deficits and unfair Tariffs and Non Tariff Trade Barriers imposed by other Countries, friend or foe, that undermine our Manufacturers, Farmers, and everyone else. If allowed to stand, this Decision would literally destroy the United States of America. At the start of this Labor Day weekend, we should all remember that TARIFFS are the best tool to help our Workers, and support Companies that produce great MADE IN AMERICA products. For many years, Tariffs were allowed to be used against us by our uncaring and unwise Politicians. Now, with the help of the United States Supreme Court, we will use them to the benefit of our Nation, and Make America Rich, Strong, and Powerful Again! Thank you for your attention to this matter,” Trump said.
BREAKING…please check back for updates.
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