A U.S. federal appeals court has rejected President Donald Trump's "justifications" that emergency powers authorize him to impose tariffs against U.S. trade partners, dealing a blow to his efforts to reshape global trade.

On Friday, the court, in a 7-4 ruling, upheld a lower court decision that the tariffs could not be imposed under the law cited by Trump to justify them. The court, composed of one Republican-appointed and six Democratic-appointed judges, ruled that "the International Emergency Economic Powers Act authorizes the president to impose specific economic sanctions to address an unusual and extraordinary threat in an emergency but does not permit comprehensive measures."

The court stated that President Trump had "unlawfully exploited" emergency powers to impose tariffs earlier this year, emphasizing that the law grants the president authority "to regulate imports but does not authorize tariffs imposed by executive orders." It further noted that "the primary power to levy taxes, such as tariffs, rests exclusively with the legislative branch under the Constitution" and that it is "a core power of Congress."

This ruling will not take effect immediately, as the court has stayed its decision until October 14, allowing the Trump administration to seek review by the Supreme Court.

In response, President Trump posted on his Truth Social platform, calling the decision "wrong and issued by a partisan appeals court," but added that "they know the United States will ultimately prevail." He emphasized that "all tariffs remain in effect" and described them as "the best tool" to help workers and support U.S. businesses. He warned that "if this decision is allowed to stand, it will literally destroy the United States and be a complete catastrophe for the country, leaving us financially weak."

He further stressed that the United States "will no longer tolerate massive trade deficits, unfair tariffs, and non-tariff trade barriers imposed by other countries, whether friends or foes."

On April 2, Trump signed an executive order imposing "reciprocal" tariffs on most countries worldwide, a policy based on the principle of "reciprocal treatment." However, he clarified that the tariffs would not be applied uniformly and that each country would be treated differently.

U.S. Treasury Secretary Scott Paisent predicted last Tuesday that the new tariffs enacted by President Donald Trump would lead to a "significant surge" in U.S. tariff revenues, potentially exceeding $500 billion annually.