A federal appeals court has determined that many of President Donald Trump's global tariffs are illegal. This ruling could significantly impact the president's trade policy. In a 7-4 decision, the U.S. Court of Appeals for the Federal Circuit upheld a lower court's finding that Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) when he imposed these tariffs.

The court's ruling allows the tariffs to remain in effect until mid-October, giving the Trump administration time to appeal to the Supreme Court. The judges stated that the IEEPA does not grant the president the power to impose tariffs. They noted, "the statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax."

This decision raises critical questions about the extent of presidential power in trade matters. The court's ruling follows a lawsuit filed by a coalition of states and small businesses, which argued that Trump's tariffs were unlawful and infringed on Congress's authority to regulate trade. Earlier this year, the Court of International Trade also ruled against the tariffs, stating they were unlawful.

During oral arguments in July, judges expressed skepticism about Trump's justification for the tariffs based on a national emergency. One judge remarked, "IEEPA doesn't even say tariffs -- doesn't even mention it."

In response to the ruling, Trump criticized the court's decision on his Truth Social platform, asserting that the court "incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end." He vowed to continue the fight with the Supreme Court's assistance.

The tariffs, which have affected nearly all U.S. trading partners, were implemented as part of Trump's broader economic strategy. They include a baseline 10 percent rate, with higher rates for certain countries. The ruling could also jeopardize existing trade agreements with major partners, such as the European Union.

If the Supreme Court ultimately rules against the tariffs, companies may seek reimbursements for the duties collected since their implementation.