Trump’s Tariffs Struck Down By Appeals Court: Here’s What’s Next

President Donald Trump‘s bold effort to impose widespread tariffs has taken a hit. The U.S. Court of Appeals for the Federal Circuit spoiled Trump’s effort on Friday, ruling that the President had gone too far in his effort to increase taxes on foreign products. According to the Associated Press, the court specifically struck down the tariffs Trump imposed in April on several trading partners. Additionally, the ruling opposed the tariffs Trump enforced earlier in the year on China, Mexico and Canada.

What’s next after the court ruled against Trump’s tariffs?

In its latest ruling, the court concluded that the decision doesn’t completely stop Trump’s tariffs for now, but the administration will have until October to appeal the case to the US Supreme Court. If the Supreme Court upholds the decision, the US may have to pay back the revenue it generated from import taxes, BBC reported. There may be some questions as well about what happens to the current deals the U.S. is negotiating. Additionally, the ruling may be devastating to Trump’s political power and reputation.

The President’s reciprocal tariffs, the taxes he imposed on several countries, including China, Canada and Mexico, are still in effect until Oct. 14. After that date, the tariffs may not be enforceable, per the appeals court. The ruling has also determined that the latest decision doesn’t affect tariffs implemented by previous presidents. That includes tariffs on steel, aluminum and copper.

What is Trump saying to defend the tariffs?

Trump argues that he is aiming to strengthen national security and ensure a trade balance with his tariff policies. The President has attempted to justify his action by citing the International Emergency Economic Powers Act (IEEPA), which gives him the power to impose economic measures in case of national emergency or threats from other countries. The appeals court, however, said the law “did not give the president wide-ranging authority to impose tariffs.” Per the ruling, the IEEPA “neither mentions tariffs (or any of its synonyms) nor has procedural safeguards that contain clear limits on the president’s power to impose tariffs.”