The US Court of Appeals for the Federal Circuit ruled 7–4 that most of President Donald Trump’s tariffs are unlawful because the International Emergency Economic Powers Act does not authorise the president to impose import duties. The court stayed its decision until October 14 to allow time to seek US Supreme Court review.
The ruling covers Trump’s “reciprocal” tariffs announced in April and separate levies issued in February on China, Canada and Mexico. It does not affect tariffs imposed under other statutes, such as measures on steel and aluminium.
Policy operations continue in parallel. The US Trade Representative said negotiations with trading partners are ongoing and that alternative legal bases are being reviewed while the appeal proceeds.
The collection of data shows the size of the programme. The Treasury reported approximately $100 billion in tariff income year-to-date by early July, with the potential to reach $300 billion for 2025 if rates and volumes remain stable. Net customs receipts in July were about $27.7 billion, up from roughly $7.1 billion a year earlier. Independent trackers estimate that about $93.9 billion was collected from January to June.
The decision follows a May 28 judgment by the US Court of International Trade, which also found the emergency-powers rationale insufficient for a broad tariff regime.
The administration said trade talks will continue while legal options are assessed, including alternative authorities to keep some levies in place.
Trump criticised the ruling and said he expects a reversal at the Supreme Court.
