A federal appeals court ruled Friday that most of President Donald Trump’s global tariffs are illegal, striking a massive blow to the core of his aggressive trade policy.
The U.S. Court of Appeals for the Federal Circuit in a 7-4 ruling held that the law Trump invoked when he granted his most expansive tariffs does not actually grant him the power to impose those levies.
Trump is all but certain to appeal the ruling to the Supreme Court. The appellate court paused its ruling from taking effect until Oct. 14, in order to give the Trump administration time to ask the Supreme Court to take up the case.
The White House did not immediately respond to CNBC’s request for comment on Friday’s ruling, which is the second straight loss for Trump in the make-or-break case.
The Trump administration has argued that the International Emergency Economic Powers Act, or IEEPA, empowers the president to effectively impose country-specific tariffs at any level if he deems them necessary to address a national emergency.
The U.S. Court of International Trade in late May rejected that stance and struck down Trump’s IEEPA-based tariffs, including his worldwide “reciprocal” tariffs unveiled in early April. But the Federal Circuit quickly paused that ruling while Trump’s appeal played out.
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