The U.S. Court of Appeals has declared that most of President Donald Trump's tariffs are illegal, but they will still affect the launch of the iPhone 17 before an inevitable Supreme Court appeal.

On Friday, the U.S. Court of Appeals for the Federal Circuit issued a 7-4 ruling, determining that President Donald Trump's attempt to use the International Emergency Economic Powers act (IEEPA) doesn't officially grant powers to raise tariffs in the way it has been used.

For most of the tariffs the Trump administration instituted, including the headline "reciprocal" tariffs from April, using the IEEPA is an overstretch of its powers.

"The core Congressional power to impose taxes such as tariffs is vested exclusively in the legislative branch by the Constitution," the court determined. "Tariffs are a core Congressional power."

The law does bestow "significant authority on the president to undertake a number of actions in response to a declared national emergency." However, the court said the tariffs "assert an expansive authority that is beyond the express limitations" of the law.

Down, but not out

The ruling is the second that works against Trump in a lawsuit referred to as V.O.S. Selections vs. Trump, reports CNBC. A consolidation of two lawsuits by states and small businesses in the United States, it is one of a number of lawsuits challenging the introduction of tariffs.

"For the second time in this case, a federal court has held that the President's so-called Liberation Day' tariffs are unlawful," said Jeffrey Schwab, attorney for the Liberty Justice Center.

The result is a reaffirmation of a ruling from May, when the U.S. Court of International Trade Law rejected arguments from the Trump Administration that the IEEPA empowered the president to impose country-specific tariffs.

While the ruling is good for critics of the tariffs, it is far from the end of the legal fight. Following the appeal, the Trump Administration intends to move the battle to the Supreme Court.

In a Truth Social post, President Trump attacked the ruling as "highly partisan" and insisted the Supreme Court would rule in his favor. He adds that, if the decision is allowed to stand, that it will "literally destroy the United States of America."

The ruling was not partisan, despite the president's claim that it is. The 7-4 vote was not split by party, and the dissenting opinion was written by an Obama-appointed judge.

It's not clear why the president thinks that the restoration of the tariffs to the baseline that they've been at for 25 years would destroy the country. It may emperil tax cuts for the billionaires, but the path to destruction is not clear.

Still a problem for Apple

While the ruling theoretically nullifies the tariffs affecting Apple and other companies in the United States, it won't do so immediately. The ruling won't actually take effect until October 14, which gives the Trump Administration time to petition the Supreme Court on the matter.

Regardless of the future decision by the Supreme Court on the matter, the delay in implementation is what Apple expected for the quarter, when Tim Cook said that Apple would see $1.1 billion in headwinds because of these tariffs.

Apple will be revealing new devices, including its iPhone 17 range of smartphones, via its September 9 special event. Based on previous releases of iPhones, shipments should start in mid-September.

The ruling's timing means the tariffs will still be in effect for the iPhone 17 launch, and for at least a few weeks after. Apple will be impacted by any applicable import tariffs for the launch itself. The iPhone 17 lineup is expected to cost more than equivalent iPhone 16 models.

If the Supreme Court does decide the tariffs are illegal, this will lower the costs of importing for Apple. A lower court has yet to decide if tariffs collected before any ban takes place would have to be paid back to importers.