The US Court of Appeals for the Federal Circuit affirmed a prior court’s ruling on Friday that found President Donald Trump’s recent tariffs, specifically the trafficking and reciprocal tariffs, exceeded the authority delegated to the president.

In its decision, the court held that the International Emergency Economic Powers Act (IEEPA) does not authorize a president to impose tariffs as President Trump did. The ruling found that Trump exercised powers reserved for Congress under Article I of the Constitution. The court affirmed the award of declaratory relief by the US Court of International Trade (CIT), which held that the executive orders are “‘invalid as contrary to law.'”

Attorney Neal Kaytal, representing the plaintiffs in this case, welcomed the court’s decision:

It’s a win for the American Constitution, that our founders basically said that decisions that are major over things like taxation have to be done by the Congress, not by the president and the stroke of his pen […] I think the court overwhelmingly today, in a 7-4 decision, rejected President Trump’s notion that he can do whatever he wants whenever he wants.

On Truth Social, President Trump nodded to the country’s highest court in possibly intervening on the appeals court’s ruling:

ALL TARIFFS ARE STILL IN EFFECT! Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed… If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak… Now, with the help of the United States Supreme Court, we will use them to the benefit of our Nation, and Make America Rich, Strong, and Powerful Again!

The court stayed its order until October 14, pending the expected appeal by the Trump Administration.

In April, five small businesses complained to the CIT about Trump’s executive orders that modified Congress’s tariff schedules for Mexico, Canada, and China. According to the complaint, the businesses had been “severely harmed” by the imposition of the tariffs. In the same month, the private plaintiffs were joined by twelve states, which complained about both reciprocal and trafficking tariffs in the case. On June 11, the US Court of Appeals for the Federal Circuit stayed the lower court’s orders pending government appeals.