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A U.S. federal appeals court has ruled that several global tariffs imposed by President Donald Trump are unlawful, citing overreach under the International Emergency Economic Powers Act (IEEPA). The court found that the administration lacked authority to use emergency powers to impose sweeping duties on nearly all trading partners.
Despite the ruling, the tariffs will remain in effect until mid-October, allowing time for a potential appeal to the Supreme Court. President Trump has vowed to challenge the decision, calling it “incorrect” and warning of broader consequences for U.S. economic strategy.
The decision has introduced fresh uncertainty for businesses, many of which had adapted supply chains and pricing models around the assumption that the tariffs would be stable. Analysts caution that fluctuating enforcement—whether lifted, reinstated, or modified—may be more disruptive than the duties themselves.
Companies now face planning challenges as legal appeals and potential policy shifts could reshape cost structures and trade relationships. The case also raises broader questions about executive authority over trade policy and the role of Congress in regulating tariffs.
