A federal appeals court rejected President Donald Trump's attempt to reimpose tariffs through alternative legal justification after the Supreme Court blocked his initial tariff strategy earlier this year.

The U.S. Court of International Trade ruled 2-1 on Thursday that Trump lacked statutory authority to impose 10 percent across-the-board tariffs based on complaints about international trade deficits and foreign net investments. The administration had pivoted to this rationale after the Supreme Court invalidated Trump's previous tariff framework in an earlier 2024 decision.

The case hinges on whether the president can invoke trade law provisions to justify sweeping tariffs without explicit congressional authorization. Trump's trade team argued the tariffs fell within executive power under provisions addressing foreign trade imbalances. The court's majority disagreed, finding the administration overreached statutory bounds.

The 2-1 split reflects deep judicial disagreement on executive power in trade matters. The dissenting judge argued the administration's interpretation merited deference under longstanding precedent. This division signals the decision will likely face further appeal, potentially returning to the Supreme Court.

The ruling complicates Trump's trade agenda and creates uncertainty for American importers and exporters who faced the tariffs. Businesses had challenged the legality of the duties, arguing they lacked proper legal foundation.

The decision also constrains the administration's flexibility in implementing trade policy without Congressional action. Democratic lawmakers had criticized Trump's tariff approach as circumventing Congress's constitutional role in regulating interstate and foreign commerce. Republicans generally supported the tariffs as leverage against trading partners they view as unfairly advantaging their own industries.

The court's rejection doesn't permanently block tariffs but requires the administration to find different legal authority or pursue congressional approval. Trump's team indicated plans to appeal, suggesting months of additional litigation before resolution.

WHAT THIS MEANS: Trump's tariff authority faces sustained