A U.S. federal appeals court has ruled that former President Donald Trump’s “reciprocal” tariffs were illegal, creating renewed uncertainty for international trade partners. In a 7-4 decision, the court said Trump overstepped by using emergency powers to impose tariffs of “unlimited duration” on nearly all imports from nearly every country. The ruling upheld an earlier court decision and could disrupt trade talks already in progress.

Despite the ruling, the tariffs will remain in effect until October 14 to allow time for further appeals. Trump has already announced plans to take the case to the Supreme Court, leaving U.S. trading partners in a “wait and see” mode as legal proceedings continue. Until then, duties will still be collected under the contested executive orders.

Two major outcomes of the ruling were clarified. First, the so-called “liberation day” tariffs are currently deemed unlawful. Second, although illegal, the tariffs will stay in place temporarily to allow other legal challenges to be reviewed. If the Supreme Court agrees they’re illegal, the U.S. may be required to refund collected tariff revenue.

Importantly, the decision does not apply to all tariffs. It excludes Trump-era duties on steel and aluminum, which remain unaffected. However, the World Trade Organization (WTO) has already found some of Trump’s broader trade measures to be illegal, and those are now under appeal via international channels.

The decision also did not reverse the end of the de minimis exception, a policy change that caused global postal disruptions. If the ruling stands, tariff rates on low-value imports could return to pre-“liberation day” levels, often meaning zero tariffs on such goods.

Trump criticized the ruling on Truth Social, calling the court “highly partisan” and warning that removing tariffs would “destroy” the U.S. economy. He vowed to continue the fight, framing tariffs as essential to protect American workers and reduce trade deficits.