A federal appeals court in the United States ruled on Friday that many tariffs imposed by former President Donald Trump are illegal. However, the court allowed these tariffs to remain in effect while the case is expected to be appealed to the Supreme Court. The United States Court of Appeals for the Federal Circuit determined that Trump's tariffs, particularly those labeled as "Liberation Day" tariffs and duties related to fentanyl, exceeded the authority granted under the national security statute he cited.

Trump implemented these tariffs using the International Economic Emergency Powers Act of 1977, known as IEEPA. This act allows the president to control economic transactions after declaring a national emergency, but it does not specifically mention tariffs. The U.S. Constitution grants Congress the power to regulate taxes and tariffs. The Liberty Justice Center, which represented businesses challenging the tariffs, stated, "The president cannot impose tariffs on his own, and IEEPA does not give him unlimited, unilateral tariff authority." They argued that the ruling protects American businesses and consumers from the negative impacts of these tariffs.

In response to the ruling, Trump took to social media, asserting, "ALL TARIFFS ARE STILL IN EFFECT!" He criticized the court as "highly partisan" and warned that removing the tariffs would be disastrous for the country, stating, "It would make us financially weak, and we have to be strong."

White House spokesman Kush Desai defended the tariffs, saying, "President Trump lawfully exercised the tariff powers granted to him by Congress to defend our national and economic security from foreign threats." He added that the administration looks forward to a favorable outcome in the Supreme Court.

The tariffs in question include a 35 percent duty on most goods from Canada not covered by the U.S.-Mexico-Canada Agreement (USMCA) and a 10 percent tariff on oil, gas, and potash. Although these tariffs have less impact on Canada due to the USMCA covering about 90 percent of Canadian exports to the U.S., they still represent a significant economic challenge.

The court's decision, which was passed by a 7-4 vote, will not take effect until October. It follows a lower court's finding that Trump improperly used IEEPA to impose tariffs. The ruling does not affect tariffs on steel, aluminum, autos, and copper, which were enacted under different legislation.

The court noted that the IEEPA was designed to allow presidents to impose sanctions during crises, not to impose tariffs. The judges stated, "It seems unlikely that Congress intended... to grant the President unlimited authority to impose tariffs." They ordered the lower court to further examine the potential repayment of billions collected from these tariffs.

Trump's tariffs have been a central part of his economic strategy, which he argued was necessary to address trade deficits. The ruling raises questions about the future of these tariffs and the trade agreements Trump has negotiated with various countries.