A divided US appeals court ruled on Friday that most of Donald Trump's tariffs are illegal, undercutting the Republican president's use of the levies as a key international economic policy tool.
The court allowed the tariffs to remain in place through October 14 to give the Trump administration a chance to file an appeal with the US Supreme Court.
The decision comes as a legal fight over the independence of the Federal Reserve also seems bound for the Supreme Court, setting up an unprecedented legal showdown this year over Trump's entire economic policy.
Trump has made tariffs a pillar of US foreign policy in his second term, using them to exert political pressure and renegotiate trade deals with countries that export goods to the United States.
The tariffs have given the Trump administration leverage to extract economic concessions from trading partners but have also increased volatility in financial markets. Trump lamented the decision by what he called a "highly partisan" court, posting on Truth Social: "If these Tariffs ever went away, it would be a total disaster for the Country."
He nonetheless predicted a reversal, saying he expected tariffs to benefit the country "with the help of the Supreme Court."
The 7-4 decision from the US Court of Appeals for the Federal Circuit in Washington, DC, addressed the legality of what Trump calls "reciprocal" tariffs imposed as part of his trade war in April, as well as a separate set of tariffs imposed in February against China, Canada and Mexico.
Democratic presidents appointed six judges in the majority and two judges who dissented, while Republican presidents appointed one judge in the majority and two dissenters.
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