A federal appeals court has ruled that most of Donald Trump's tariffs are an overreach of his use of emergency powers as president.
The so-called reciprocal tariffs - imposed on nearly every country the US trades with - are being illegally imposed, the US Court of Appeals said on Friday.
The decision upholds a ruling in May from the Court of International Trade, which also rejected Trump's argument that his global tariffs were permitted under an emergency economic powers act.
Many of the tariffs that would be affected by the ruling stem from an announcement in April of a flat 10% rate on imports from all countries, which Trump said would even out 'unfair' trade relations with the US.
The court did not halt the tariffs but instead said they would remain in place until mid-October, setting up a further legal challenge in the US Supreme Court.
In its 7-4 decision, the appellate court backed a lower court's finding that Trump did not have the authority to impose global tariffs, citing the International Emergency Economic Powers Act (IEEPA) which the judges found did not grant the power to impose tariffs, duties, or the like, or the power to tax.
Trump immediately criticized the judgement, calling the appeals court 'highly partisan' and the ruling a 'disaster' for the country.
Beyond being a significant setback to Trump's agenda, the ruling could have immediate impacts on the US economy, leading to market uncertainties and affecting global trade.
As this case is expected to progress to the Supreme Court, potential outcomes could shape the future of trade policies and presidential powers.
Current tariffs will remain until mid-October, after which they may no longer be enforceable unless the Supreme Court intervenes.
