Trump’s tariff plan receives another legal blow

On Friday, a federal appeals court upheld a previous ruling that invalidated most of President Trump’s sweeping global tariff agenda, setting the stage for a Supreme Court showdown in the coming weeks.

The decision

In a 7-4 ruling—which featured judges appointed by both Democratic and Republican presidents on each side of the decision—the appellate court upheld a lower-court ruling that found Trump overstepped his authority in citing a 1977 law known as the International Emergency Economic Powers Act (IEEPA).

• Trump claimed that IEEPA, which gives a President authority to “regulate” the “importation” of goods to protect national security, lets him impose tariffs as long as he declares a national emergency.

But appeals court judges disagreed. In the majority opinion, judges said the “unheralded” and “transformative” nature of Trump’s tariff policy triggers the major questions doctrine—a term coined by SCOTUS to describe what Justices saw as executive overreach by the Biden admin.

• “IEEPA does not use the words ‘tariffs’ or ‘duties,’ nor any similar terms”—unlike other laws where Congress explicitly gives the President tariff power, the opinion said.

Not all tariffs are affected: Duties imposed by the Trump admin under a different legal authority called Section 232—including sector-specific tariffs on automotive, steel, copper, and aluminum imports—aren’t covered by Friday’s ruling.

Looking ahead…The appeals court decision allows Trump’s tariff agenda to remain in place through mid-October to allow the White House time to ask the Supreme Court to hear the case.