A U.S. appeals court on Friday rules that President Donald Trump had no legal right to impose sweeping tariffs on imports under a national emergency law but left in place for now his effort to build a protectionist wall around the American economy.
The ruling will not take effect until Oct. 14, giving the government time to appeal to the Supreme Court. It remains unclear how the decision will affect trade with countries already subject to agreements.
Trump already announced he intends to challenge the appeals court ruling, saying that removing the tariffs would be a "total disaster" for the United States.
"Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed," he said on Truth Social. "If allowed to stand, this Decision would literally destroy the United States of America."
The case concerns country-specific tariffs first announced by Trump in April, targeting dozens of U.S. trading partners. The administration later adjusted some rates, including a 15% tariff on most European Union imports, which came into effect on August 7.
Trump argued that trade deficits with other nations posed a national security risk, justifying tariffs without congressional approval.
The appeal followed a May ruling by a federal court in New York that permanently blocked the tariffs. Trump's administration sought review from the appeals court, which initially lifted the New York injunction to examine the case.
In Friday's decision, the appeals court largely upheld the lower court's ruling, though it did not directly ban the tariffs.
A dozen US states sued in April, including 10 led by Democrats and two by Republicans, arguing that under the U.S. Constitution, the power to levy taxes, tariffs and duties rests with the U.S. Congress, not the president.
