The federal appeals court's decision, handed down on August 29, upheld a lower court's finding that the administration had overstepped its authority by using a decades-old emergency law to impose the tariffs. In a 7-4 ruling, the court stated that the International Emergency Economic Powers Act (IEEPA) of 1977 does not grant the president unlimited power to levy import taxes.
In response, President Donald Trump has been clear about his administration's plan to appeal directly to the nation's highest court. Speaking at a press conference, the president stated, "We are going to the SC tomorrow and we are going to ask for an expedited ruling. Stock markets need the tariffs." He also described the lower court's decision as "very shocking" and claimed it was a blow to the country's economic interests.
The court of appeals, in its decision, allowed the tariffs to remain in place until October 14, giving the administration time to appeal. This delay has not stopped the administration from taking swift action, as officials have expressed a sense of urgency about the matter. According to a statement by the administration, the tariffs are critical to the U.S. economy, providing a source of revenue and serving as a tool to address trade imbalances.
While the court ruling did not affect all tariffs—specifically those related to national security—it did inject legal uncertainty into a significant portion of the administration's trade agenda. The outcome of the Supreme Court's review will have a major impact on the future of U.S. trade policy and the balance of power between the executive and legislative branches.