A federal appeals court in the country ruled on Friday that US President Donald Trump’s tariffs on almost every country on earth have no legal basis. However, the court did not immediately rescind the tariffs, giving the administration time to appeal to the Supreme Court.

According to the ruling of the US Court of Appeals for the Federal Circuit, Trump overstepped his authority in using the 1977 International Emergency Economic Powers Act (IEEPA). The decision largely upheld a May ruling by a specialised federal trade court in New York.

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“It seems unlikely that Congress intended to … grant the President unlimited authority to impose tariffs,” the judges wrote in a 7-4 ruling, the Associated Press reported.

A dissent from the judges who disagreed with Friday’s ruling said that the 1977 law allowing for emergency actions “is not an unconstitutional delegation of legislative authority under the Supreme Court’s decisions,” which have allowed the legislature to grant some tariff authorities to the President.

Trump imposed sweeping tariffs on almost all countries on April 2, calling it “Liberation Day.” The tariffs included “reciprocal” tariffs of up to 50% on countries with which the United States runs trade deficits and a “baseline” 10% tariff on just about everyone else.

Trump has since revised those tariff rates, with countries like India being hit with additional tariffs for reasons other than the so-called trade deficit.

Trump acted lawfully, says White House

The Donald Trump administration reacted strongly to the court ruling on his tariffs, with the US President himself saying that if the decision was allowed to stand, it would “literally destroy the United States of America”.

“Today, a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end. 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. The U.S.A. will no longer tolerate enormous Trade Deficits and unfair Tariffs and Non Tariff Trade Barriers imposed by other Countries, friend or foe, that undermine our Manufacturers, Farmers, and everyone else. If allowed to stand, this Decision would literally destroy the United States of America,” he said in a statement on his Truth Social platform.

He indicated that his administration will fight the ruling in the US Supreme Court.

White House spokesman Kush Desai said Trump had acted lawfully, and “we look forward to ultimate victory on this matter.”

Revenue from tariffs now totals $159 billion, more than double what it was at the same point last year. Indeed, the Justice Department warned in a legal filing this month that revoking the tariffs could mean “financial ruin” for the United States.

Attorney General Pam Bondi, meanwhile, accused the judges of interfering with the president’s central role in foreign policy and vowed to appeal.