A federal appeals court delivered a stunning blow to President Trump’s trade agenda Friday, ruling that most of the president’s sweeping global tariffs are illegal.

But the ruling is not yet final as the three-judge panel allowed the tariffs to remain in effect until Oct. 14, giving the Trump administration time to appeal to the Supreme Court.

The judges on the US Court of Appeals for the Federal Circuit found that the statute Trump relied on to impose his most expansive tariffs did not actually grant him that authority.

Trump and the White House confirmed on Friday that he will take the case to the high court, setting up a fresh legal battle over the scope of presidential power to slap duties on foreign goods.

The president took to Truth Social late Friday to blast the ruling, denouncing the “Highly Partisan Appeals Court” while declaring that “ALL TARIFFS ARE STILL IN EFFECT!”

“If these Tariffs ever went away, it would be a total disaster for the Country,” Trump wrote on his social media page. “It would make us financially weak, and we have to be strong.”

Friday’s decision undercuts the centerpiece of Trump’s aggressive trade policy, which reshaped US economic relations with much of the world.

A coalition of small businesses and 12 states sued to overturn Trump’s sweeping 2025 tariff program, which was imposed through a series of executive orders under the International Emergency Economic Powers Act.

The measures included “trafficking tariffs” of up to 25% on Mexico and Canada and 10–20% on China, justified by Trump as necessary to fight drug trafficking and fentanyl, as well as “reciprocal tariffs” that slapped a 10% baseline duty on nearly all imports with higher surcharges for select countries.

Trump declared a national emergency at the southern border upon taking office on Jan. 20 and expanded it to cover Canada and China by Feb. 1, before rolling out the global tariff regime in April.

The Court of International Trade struck down the orders in May, finding IEEPA does not authorize blanket tariffs, and the Federal Circuit affirmed that ruling on Friday.

The US Court of Appeals for the Federal Circuit ruled on Friday that the IEEPA does not give presidents authority to levy duties.

“The power to ‘regulate’ has long been understood to be distinct from the power to ‘tax,’” the court wrote, underscoring that IEEPA’s language falls short of granting tariff powers.

“IEEPA’s grant of presidential authority to ‘regulate’ imports does not authorize the tariffs imposed by the Executive Orders,” the judges declared, affirming the Court of International Trade’s May decision.

The ruling emphasized that past uses of IEEPA had been limited to sanctions, embargoes, and asset freezes, not duties of this scope.

“Whatever the policy justifications may be, they cannot override Congress’s choice of statutory limits,” the court said.

Trump, in his Friday night Truth Social post, said that the US “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.”

“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!”

The White House added in a separate statement that Trump “lawfully exercised the tariff powers granted to him by Congress to defend our national and economic security from foreign threats.”

“The President’s tariffs remain in effect, and we look forward to ultimate victory on this matter.”

Trump wasted little time reviving his trademark tariff blitz after taking office earlier.

On April 2, he declared a national emergency and unveiled sweeping “reciprocal tariffs,” slapping a 10% baseline duty on nearly all US imports.

The president also imposed a 25% tariff on imported automobiles and then doubled steel and aluminum duties to 50%.

As tariffs skyrocketed, US ties to its largest trading partners, including China, spiraled.

Duties on Chinese goods hit a blistering 145% before a temporary July truce lowered rates to 30%.

Trump has also slapped duties on imports from India (50%), Canada (35%) and Mexico (25%). 

The president has ordered sweeping changes to low-cost online imports, dissolving the longstanding “de minimis” exemption — meaning even low-value foreign parcels now face duties or fees.

And Trump additionally announced sector-specific tariffs such as a 100% levy on foreign films and a 25% “fentanyl tariff” aimed at countries, primarily China, that are accused of facilitating opioid flows into the US.