The U.S. Court of Appeals for the Federal Circuit, pictured July 31, 2025. (Photo by Ashley Murray/States Newsroom)

The economy-wide tariffs President Donald Trump placed on nearly every U.S. trading partner are illegal, a federal appeals court said Friday.

The International Economic Emergency Powers Act does not give the president the power to impose tariffs, the U.S. Court of Appeals for the Federal Circuit ruled in a 7-4 decision upholding a May decision from the U.S. Court of International Trade and dealing a blow to Trump’s signature trade policy.

The unsigned majority opinion said the tariffs “exceed the authority delegated to the President by IEEPA’s text.”

However, the judges delayed their ruling from going into effect until October, providing the Trump administration an opportunity to appeal to the U.S. Supreme Court. The ruling also does not affect other tariffs Trump issued under different authorities, including industry- or material-specific tariffs on automobiles, steel and aluminum.

In a post to social media, Trump said he would appeal to the Supreme Court, where he predicted victory, and repeated his claim that tariffs were an essential economic tool.

“If these Tariffs ever went away, it would be a total disaster for the Country,” he wrote shortly after the decision was published. “It would make us financially weak, and we have to be strong.… If allowed to stand, this Decision would literally destroy the United States of America. At the start of this Labor Day weekend, we should all remember that TARIFFS are the best tool to help our Workers, and support Companies that produce great MADE IN AMERICA products.”

Several Democratic states challenged the IEEPA tariffs. Oregon Solicitor General Benjamin Gutman argued on their behalf on July 31. The 11 judges on the appeals court expressed skepticism of both sides during those arguments.

In a statement Friday, Oregon Attorney General Dan Rayfield called the ruling “a huge win for Americans.”

“Every court that has reviewed these tariffs has agreed that they are unconstitutional,” he said. “This ruling couldn’t come at a better time as people are walking into their local stores and seeing price increases for school supplies, clothes, and groceries.”