- A federal appeals court on Friday said President Donald Trump’s sweeping tariff plan was illegal.
- The appeals court judge ruled that Trump overstepped his executive power to rewrite trade policy.
- If appealed, as is likely, an ultimate decision will be made by the Supreme Court.
A federal appeals court on Friday ruled that President Donald Trump’s sweeping tariff plan was illegal — but overturned the lower trade court’s injunction blocking them, allowing them to stay in place for now.
A 7-4 ruling from the appeals court ruled that Trump overstepped his executive power to rewrite trade policy. The court wrote in its decision that the president does not have the authority to impose tariffs outright through the International Emergency Economic Powers Act, or IEEPA, as the administration has said.
“Contrary to the Government’s assertion, the mere authorization to ‘regulate’ does not in and of itself imply the authority to impose tariffs,” the ruling reads. “The power to ‘regulate’ has long been understood to be distinct from the power to ‘tax.'”
In vacating the lower court’s injunction, the appeals court will allow Trump’s tariffs to remain in place through mid-October, giving both parties in the case time to ask the Supreme Court to take up the appeal.
If the Trump administration appeals the decision, as is likely, the Supreme Court will be asked to rule on the limits of executive power.
Representatives for the White House did not immediately respond to a request for comment from Business Insider.
This is a developing story. Please check back for updates.
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