A US federal appeals court has struck down most tariffs imposed by President Donald Trump, ruling they exceed his authority under the International Emergency Economic Powers Act (IEEPA). According to BBC, the decision affects tariffs on China, Mexico, Canada, and dozens of other countries, but does not apply to steel and aluminium levies imposed under separate authority.

The court said setting tariffs is a core Congressional power and that IEEPA does not grant the president unlimited authority. The ruling responds to lawsuits from small businesses and several US states challenging Trump’s executive orders that imposed a baseline 10 percent tariff on almost all imports.

Trump condemned the ruling as partisan, warning it would weaken the US economically, while White House lawyers argued overturning the tariffs could trigger a financial crisis. The decision will take effect on 14 October unless the Supreme Court intervenes, likely setting up a high-stakes showdown over presidential power and trade policy, BBC reported.