WASHINGTON (AP) — President Donald Trump has audaciously claimed virtually unlimited power to bypass Congress and impose sweeping taxes on foreign products.
Now a federal appeals court has thrown a roadblock in his path.
The U.S. Court of Appeals for the Federal Circuit ruled Friday that Trump went too far when he declared national emergencies to justify imposing sweeping import taxes on almost every country on earth. The ruling largely upheld a May decision by a specialized federal trade court in New York. But the 7-4 appeals court decision tossed out a part of that ruling striking down the tariffs immediately, allowing his administration time to appeal to the U.S. Supreme Court.
The ruling was a big setback for Trump, whose erratic trade policies have rocked financial markets, paralyzed businesses with uncertainty and raised fears of higher prices and slower economic growth.
The court’s decision centers on the tariffs Trump slapped in April on almost all U.S. trading partners and levies he imposed before that on China, Mexico and Canada.
Trump on April 2 — Liberation Day, he called it — imposed so-called reciprocal tariffs of up to 50% on countries with which the United States runs a trade deficit and 10% baseline tariffs on almost everybody else.
The president later suspended the reciprocal tariffs for 90 days to give countries time to negotiate trade agreements with the United States — and reduce their barriers to American exports. Some of them did — including the United Kingdom, Japan and the European Union — and agreed to lopsided deals with Trump to avoid even bigger tariffs.
Those that didn't knuckle under — or otherwise incurred Trump's wrath — got hit harder earlier this month. Laos got rocked with a 40% tariff, for instance, and Algeria with a 30% levy. Trump also kept the baseline tariffs in place.
Claiming extraordinary power to act without congressional approval, Trump justified the taxes under the 1977 International Emergency Economic Powers Act by declaring the United States' longstanding trade deficits “a national emergency.”
In February, he'd invoked the law to impose tariffs on Canada, Mexico and China, saying that the illegal flow of immigrants and drugs across the U.S. border amounted to a national emergency and that the three countries needed to do more to stop it.
The U.S. Constitution gives Congress the power to set taxes, including tariffs. But lawmakers have gradually let presidents assume more power over tariffs — and Trump has made the most of it.
The court challenge does not cover other Trump tariffs, including levies on foreign steel, aluminum and autos that the president imposed after Commerce Department investigations concluded that those imports were threats to U.S. national security.
Nor does it include tariffs that Trump imposed on China in his first term — and President Joe Biden kept — after a government investigation concluded that the Chinese used unfair practices to give their own technology firms an edge over rivals from the United States and other Western countries.
The administration had argued that courts had approved then-President Richard Nixon’s emergency use of tariffs in the economic chaos that followed his decision to end a policy that linked the U.S. dollar to the price of gold. The Nixon administration successfully cited its authority under the 1917 Trading With Enemy Act, which preceded and supplied some of the legal language later used in IEEPA.
In May, the U.S. Court of International Trade in New York rejected the argument, ruling that Trump’s Liberation Day tariffs “exceed any authority granted to the President’’ under the emergency powers law. In reaching its decision, the trade court combined two challenges — one by five businesses and one by 12 U.S. states — into a single case.
On Friday, the federal appeals court wrote in its 7-4 ruling that “it seems unlikely that Congress intended to ... grant the President unlimited authority to impose tariffs.”
A dissent from the judges who disagreed with Friday’s ruling clears a possible legal path for Trump, concluding that the 1977 law allowing for emergency actions “is not an unconstitutional delegation of legislative authority under the Supreme Court’s decisions,” which have allowed the legislature to grant some tariffing authorities to the president.
The government has argued that if Trump's tariffs are struck down, it might have to refund some of the import taxes that it’s collected, delivering a financial blow to the U.S. Treasury. Revenue from tariffs totaled $159 billion by July, more than double what it was at the same point the year before. Indeed, the Justice Department warned in a legal filing this month that revoking the tariffs could mean “financial ruin” for the United States.
It could also put Trump on shaky ground in trying to impose tariffs going forward.
“While existing trade deals may not automatically unravel, the administration could lose a pillar of its negotiating strategy, which may embolden foreign governments to resist future demands, delay implementation of prior commitments, or even seek to renegotiate terms,” Ashley Akers, senior counsel at the Holland & Knight law firm and a former Justice Department trial lawyer, said before the appeals court decision.
The president vowed to take the fight to the Supreme Court. “If allowed to stand, this Decision would literally destroy the United States of America,” he wrote on his social media platform.
Trump does have alternative laws for imposing import taxes, but they would limit the speed and severity with which he could act. For instance, in its decision in May, the trade court noted that Trump retains more limited power to impose tariffs to address trade deficits under another statute, the Trade Act of 1974. But that law restricts tariffs to 15% and to just 150 days on countries with which the United States runs big trade deficits.
The administration could also invoke levies under a different legal authority — Section 232 of the Trade Expansion Act of 1962 — as it did with tariffs on foreign steel, aluminum and autos. But that requires a Commerce Department investigation and cannot simply be imposed at the president’s own discretion.
President Donald Trump speaks during a cabinet meeting at the White House, Tuesday, Aug. 26, 2025, in Washington. (AP Photo/Mark Schiefelbein)
The U.N. Security Council scheduled an emergency meeting Thursday to discuss Iran's deadly protests at the request of the United States, even as President Donald Trump left unclear what actions he would take against the Islamic Republic.
Tehran appeared to make conciliatory statements in an effort to defuse the situation after Trump threatened to take action to stop further killing of protesters, including the execution of anyone detained in Tehran’s bloody crackdown on nationwide protests.
White House press secretary Karoline Leavitt said, “All options remain on the table for the president.”
Iran’s crackdown on the demonstrations has killed at least 2,615, the U.S.-based Human Rights Activists News Agency reported. The death toll exceeds any other round of protest or unrest in Iran in decades and recalls the chaos surrounding the country’s 1979 Islamic Revolution.
The sound of gunfire faded Thursday in the capital, Tehran. The country closed its airspace to commercial flights for hours without explanation early Thursday and some personnel at a key U.S. military base in Qatar were advised to evacuate. The U.S. Embassy in Kuwait also ordered its personnel to “temporary halt” travel to the multiple military bases in the small Gulf Arab country.
Here is the latest:
Masih Alinejad, one of the most vocal Iranian dissidents in the U.S., accused the United Nations and the Security Council of failing “to respond with the urgency this moment demands” at the emergency U.N. Security Council meeting Thursday.
In October, two purported Russian mobsters were each sentenced to 25 years behind bars for hiring a hitman to kill Alinejad at her Brooklyn home on behalf of the Iranian government.
Sitting across the table from the Iranian ambassador to the U.N., Alinejad, who came after an invitation from the U.S., said that “the members of this body have forgotten the privilege and responsibility of sitting in this room.”
Ahead of the emergency U.N. Security Council meeting Thursday, Iranian Foreign Minister Abbas Araghchi and Secretary-General António Guterres
spoke by phone to discuss the recent deadly protests and Iran’s request for the world body to do more to condemn what they call foreign influence in the Islamic Republic, according to a readout of the call posted on Iranian state TV.
The semiofficial Tasnim news agency reported that Araghchi implored the top U.N. official to live up to the “serious expectation” that Iran’s government and its people have of the U.N.s’ role in condemning what the officials called “illegal U.S. interventions against Iran.”
White House press secretary Karoline Leavitt said that U.S. President Donald Trump and his team had communicated to Iranian officials that there would be “grave consequences” if killing continues against protesters in Iran.
“The president understands today that 800 executions that were scheduled and supposed to take place yesterday, were halted,” she said.
But Trump continues closely watching the situation, she said.
“All options remain on the table for the president,” Leavitt said.
Abdul Malik al-Houthi, leader of the Iran-backed Yemeni rebel group, said on Thursday that “criminal gangs” were responsible for the situation in Iran, accusing them of carrying out an “American-Israeli” scheme.
“Criminal gangs in Iran killed Iranian citizens, security forces and burned mosques,” he said without providing evidence. “What’s being committed by criminal gangs in Iran is horrific, bearing an American stamp as it includes slaughter and burning some people alive.”
He also said that the U.S. imposed economic sanctions on Iran to create a crisis leading to the current issues in the country with the end goal of controlling Iran.
Yet he said the U.S. has “failed in Iran” and that Iranians “will not yield to America.”
The president of the European Union’s executive arm says the 27-member bloc is looking to strengthen sanctions against Iran as ordinary Iranians continue their protests against Iran’s theocratic government.
Commission President Ursula von der Leyen said Thursday following a meeting of the EU’s commissioners in Limassol, Cyprus that current sanctions against Iran are “weakening the regime.”
Von der Leyen said that the EU is looking to sanction individual Iranians —apart from those who belong to Iran’s Islamic Revolutionary Guard — who “are responsible for the atrocities.”
She added that the people of Iran who are “bravely fighting for a change” have the EU’s “full political support.”
Canada’s foreign minister says a Canadian citizen has died in Iran “at the hands of the Iranian authorities.”
“Peaceful protests by the Iranian people — asking that their voices be heard in the face of the Iranian regime’s repression and ongoing human rights violations — has led the regime to flagrantly disregard human life,” Canadian Foreign Affairs Minister Anita Anand posted on social media Thursday.
“This violence must end. Canada condemns and calls for an immediate end to the Iranian regime’s violence,” she added.
Anand said consular officials are in contact with the victim’s family in Canada. She did not provide details.
The International Federation of Red Cross and Red Crescent Societies announced Thursday that a local staff member was killed and several others were wounded during the deadly protests in Iran over the weekend.
Amir Ali Latifi, an Iranian Red Crescent Society worker, was working in the country’s Gillan province on Jan. 10 when he was killed “in the line of duty,” the organization said in a statement.
“The IFRC is deeply concerned about the consequences of the ongoing unrest on the people of Iran and is closely monitoring the situation in coordination with the Iranian Red Crescent Society,” the statement continued.
U.S. President Donald Trump has hailed as “good news” reports that the death sentence has been lifted for an Iranian shopkeeper arrested in a violent crackdown on protests.
Relatives of 26-year-old Erfan Soltani had said he faced imminent execution.
Trump posed Thursday on his Truth Social site: “FoxNews: ‘Iranian protester will no longer be sentenced to death after President Trump’s warnings. Likewise others.’ This is good news. Hopefully, it will continue!”
Iranian state media denied Soltani had been condemned to death. Iranian judicial authorities said Soltani was being held in a detention facility outside of the capital. Alongside other protesters, he has been accused of “propaganda activities against the regime,” state media said.
Trump sent tensions soaring this week by pledging that “help is on its way” to Iranian protesters and urging them to continue demonstrating against authorities in the Islamic Republic.
On Wednesday Trump signaled a possible de-escalation, saying he had been told that “the killing in Iran is stopping.”
In a joint statement, the foreign ministers of Canada, France, Germany, Italy, Japan, the United Kingdom, the United States and the European Union’s main foreign policy chief said the G7 members were “gravely concerned” by the developments surrounding the protests, and that they “strongly oppose the intensification of the Iranian authorities’ brutal repression of the Iranian people.”
The statement, published on the EU’s website Thursday, said the G7 were “deeply alarmed at the high level of reported deaths and injuries” and condemned “the deliberate use of violence” by Iranian security forces against protesters.
The G7 members “remain prepared to impose additional restrictive measures if Iran continues to crack down on protests and dissent in violation of international human rights obligations,” the statement said.
China’s Foreign Minister Wang Yi has spoken with his counterpart in Iran, who said the situation was “now stable,” China’s Ministry of Foreign Affairs said.
Abbas Araghchi said “he hoped China will play a greater role in regional peace and stability” during the talks, according to the statement from the ministry.
“China opposes imposing its will on other countries, and opposes a return to the ‘law of the jungle’,” Wang said.
“China believes that the Iranian government and people will unite, overcome difficulties, maintain national stability, and safeguard their legitimate rights and interests,” he added. “China hopes all parties will cherish peace, exercise restraint, and resolve differences through dialogue. China is willing to play a constructive role in this regard.”
“We are against military intervention in Iran,” Turkish Foreign Minister Hakan Fidan told journalists in Istanbul on Thursday. “Iran must address its own internal problems… They must address their problems with the region and in global terms through diplomacy so that certain structural problems that cause economic problems can be addressed.”
Ankara and Tehran enjoy warm relations despite often holding divergent interests in the region.
Fidan said the unrest in Iran was rooted in economic conditions caused by sanctions, rather than ideological opposition to the government.
Iranians have been largely absent from an annual pilgrimage to Baghdad, Iraq, to commemorate the death of Imam Musa al-Kadhim, one of the twelve Shiite imams.
Many Iranian pilgrims typically make the journey every year for the annual religious rituals.
Streets across Baghdad were crowded with pilgrims Thursday. Most had arrived on foot from central and southern provinces of Iraq, heading toward the shrine of Imam al-Kadhim in the Kadhimiya district in northern Baghdad,
Adel Zaidan, who owns a hotel near the shrine, said the number of Iranian visitors this year compared to previous years was very small. Other residents agreed.
“This visit is different from previous ones. It lacks the large numbers of Iranian pilgrims, especially in terms of providing food and accommodation,” said Haider Al-Obaidi.
Europe’s largest airline group said Thursday it would halt night flights to and from Tel Aviv and Jordan's capital Amman for five days, citing security concerns as fears grow that unrest in Iran could spiral into wider regional violence.
Lufthansa — which operates Swiss, Austrian Airlines, Brussels Airlines and Eurowings — said flights would run only during daytime hours from Thursday through Monday “due to the current situation in the Middle East.” It said the change would ensure its staff — which includes unionized cabin crews and pilots -- would not be required to stay overnight in the region.
The airline group also said its planes would bypass Iranian and Iraqi airspace, key corridors for air travel between the Middle East and Asia.
Iran closed its airspace to commercial flights for several hours early Thursday without explanation.
A spokesperson for Israel’s Airport Authority, which oversees Tel Aviv’s Ben Gurion Airport, said the airport was operating as usual.
Iranian state media has denied claims that a young man arrested during Iran’s recent protests was condemned to death. The statement from Iran’s judicial authorities on Thursday contradicted what it said were “opposition media abroad” which claimed the young man had been quickly sentenced to death during a violent crackdown on anti-government protests in the country.
State television didn’t immediately give any details beyond his name, Erfan Soltani. Iranian judicial authorities said Soltani was being held in a detention facility outside of the capital. Alongside other protesters, he has been accused of “propaganda activities against the regime,” state media said.
New Zealand’s Foreign Minister Winston Peters said Thursday that his government was “appalled by the escalation of violence and repression” in Iran.
“We condemn the brutal crackdown being carried out by Iran’s security forces, including the killing of protesters,” Peters posted on X.
“Iranians have the right to peaceful protest, freedom of expression, and access to information – and that right is currently being brutally repressed,” he said.
Peters said his government had expressed serious concerns to the Iranian Embassy in Wellington.
Women cross an intersection in downtown Tehran, Iran, Thursday, Jan. 15, 2026. (AP Photo/Vahid Salemi)
A demonstrator lights a cigarette with a burning poster depicting Supreme Leader Ayatollah Ali Khamenei during a rally in support of Iran's anti-government protests, in Holon, Israel, Wednesday, Jan. 14, 2026. (AP Photo/Ohad Zwigenberg)
Protesters participate in a demonstration in support of the nationwide mass protests in Iran against the government, in Berlin, Germany, Wednesday, Jan. 14, 2026. (AP Photo/Ebrahim Noroozi)
Protesters participate in a demonstration in support of the nationwide mass protests in Iran against the government, in Berlin, Germany, Wednesday, Jan. 14, 2026. (AP Photo/Ebrahim Noroozi)
