The court ruled that the US president lacked the legal authority to declare national emergencies and impose import taxes on nearly every country, largely upholding a decision by a specialized federal trade court.
However, the court invalidated a portion of the prior ruling that would have immediately canceled the tariffs, giving the Trump administration time to appeal to the US Supreme Court.
“ALL TARIFFS ARE STILL IN EFFECT,” Mr. Trump wrote on Truth Social, adding that the “highly partisan” court had “incorrectly” stated that the tariffs should be removed.
President Trump announced a raft of tariffs in April, reversing decades of US trade policy. File pic: AP
The decision may limit the speed and severity of Mr. Trump’s future actions, despite having alternative laws for imposing import taxes.
Mr. Trump’s tariffs, which reversed decades of US trade policy, sparked fears of higher prices and slower economic growth after they shook global markets.
However, these tariffs also strained relationships with US trading partners and allies, as Mr. Trump used them to pressure the European Union, Japan, and other countries into accepting one-sided trade deals.
“While existing trade deals may not automatically unravel, the administration could lose a pillar of its negotiating strategy. This might embolden foreign governments to resist future demands or seek to renegotiate terms,” remarked Ashley Akers, a senior counsel at the Holland & Knight law firm and former Justice Department trial lawyer, before the appeals court ruling.
“A ruling against the tariffs would represent not just a legal defeat, but a serious blow to the administration’s coercive trade diplomacy model.”
Read more from Sky News: US blocks Palestinian resident from UN meeting
Trump revokes Secret Service protection for Harris
As a result, the US government might need to refund some of the import taxes collected, which would be financially detrimental to the Treasury. The Treasury collected $142 billion in tariff revenue by July – more than double the amount at the same point the previous year.
In its legal filing this month, the Justice Department warned that revoking the tariffs could mean “financial ruin” for the US.
“If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak, and we have to be strong,” Mr. Trump added on Truth Social after the ruling.
