The US Court of Appeals for the Federal Circuit, in a 7-4 ruling, declared that the law Trump used—the International Emergency Economic Powers Act (IEEPA)—does not give the president the authority to impose tariffs on imports. Instead, the court stated that this power lies only with Congress.

The judges explained that the Constitution gives Congress the exclusive right to impose taxes and tariffs. If Congress chooses to share that power, it must do so clearly. According to the court, allowing the president to levy tariffs without Congress would break from long-standing American traditions.

The ruling will take effect on October 14, unless Trump appeals to the Supreme Court, which he has already promised to do. In response, Trump wrote on his social media platform, Truth Social, that the court’s decision was wrong and politically motivated. He warned that removing tariffs would be disastrous for the United States.

Since April, Trump has imposed tariffs ranging from 10% to 50% on many countries, including India, the world’s largest diamond manufacturer. These tariffs have disrupted global trade, and industry groups are lobbying the administration to exempt diamonds from the duties.

The National Retail Federation (NRF) also reacted to the court’s ruling. The group said that the ongoing conflict between the courts, Congress, and the administration is hurting retailers. Tariffs, they argued, increase costs throughout the supply chain and lead to higher prices for American consumers. The NRF expressed hope that the Supreme Court will resolve the issue quickly to bring stability to businesses and the economy.