US court blocks Trump tariffs: Why, what it means, and what comes next

A federal appeals court has ruled that President Donald Trump overstepped his legal authority when he imposed sweeping import tariffs under a decades-old emergency powers law, delivering a serious blow to one of his hallmark economic strategies.

In a 7–4 decision issued Friday, the U.S. Court of Appeals for the Federal Circuit said Trump unlawfully used the International Emergency Economic Powers Act (IEEPA) to justify tariffs on countries including China, Mexico, and Canada. The court emphasized that IEEPA, enacted in 1977 to manage national emergencies, does not give the president the power to impose taxes — including tariffs — which it called “a core Congressional power” under the Constitution.

The ruling upholds a lower court decision and specifically strikes down Trump’s “Liberation Day” tariffs and other levies announced earlier this year. However, the court allowed the tariffs to remain in effect until October 14, giving the administration time to appeal to the Supreme Court.

The White House, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick have all defended the tariffs and signaled a full-scale legal fight ahead. Trump called the ruling “highly partisan,” warning it would lead to economic disaster if allowed to stand.

Here’s what the ruling means — and what comes next:

1. What did the court say about Trump’s use of emergency powers?
The court ruled that Trump exceeded his authority under IEEPA. The statute does not include language allowing the imposition of tariffs, and the judges said any power to tax must be clearly granted by Congress.

2. What prompted the legal challenge?
Two consolidated lawsuits — one from small U.S. businesses, another from 12 Democratic-led states — argued that Trump bypassed Congress to create trade policy. They cited the Constitution’s explicit assignment of tax powers to the legislative branch.

3. Are the tariffs still in effect?
Yes, for now. The court delayed the implementation of its ruling until October 14 to allow the administration to appeal. The case also returns to a lower court for further review of how broadly the tariffs were blocked.

4. How is the Trump administration responding?
Trump and top officials say the ruling jeopardizes national security and international negotiations. Treasury and Commerce officials warned of retaliation from allies and harm to existing trade deals.

5. What does this mean for future presidential powers?
If the ruling holds, it reaffirms that presidents cannot unilaterally impose tariffs under emergency laws — reshaping the limits of executive authority over U.S. trade policy.