A U.S. appeals court ruled on Friday that most of President Donald Trump's global tariffs were illegal, finding he exceeded his authority when imposing them.

A panel of judges in Washington upheld an earlier decision by the Court of International Trade that Trump wrongfully invoked an emergency law to issue the tariffs. Despite the ruling, the tariffs will remain in place for now as the case continues through the legal system.

The ruling does not affect Trump's first-term Section 232 tariffs on steel, aluminum, and autos, nor the Section 301 tariffs on Chinese goods, as these were imposed under different legal authorities.

The legal challenge came from a coalition including 12 Democratic-led states such as Oregon, New York, and California, along with small businesses like importers of pipes, cycling gear, and fishing equipment. They argued the tariffs violated constitutional separations of power and exceeded the scope of the International Emergency Economic Powers Act (IEEPA).

In May 2025, the U.S. Court of International Trade granted summary judgment to the plaintiffs, ruling the tariffs were "ultra vires" (beyond legal authority) and contrary to law. The Department of Justice appealed and secured a temporary stay.

The Trump administration has indicated plans for an emergency appeal to the Supreme Court, while some Republican lawmakers have discussed legislation to retroactively authorize similar measures.

If ultimately upheld, the decision could lead to the cessation of the affected tariffs, potential refunds for importers, and set a precedent limiting presidential power in trade policy while shifting more authority back to Congress.

Source: Investing.com