A US trade court on Wednesday blocked former President Donald Trump’s sweeping tariffs on imports, ruling that he exceeded his authority by imposing duties without congressional approval.
In a major decision, the Court of International Trade stated that only Congress has the constitutional power to regulate foreign commerce, and that Trump’s use of emergency powers under the International Emergency Economic Powers Act (IEEPA) to justify across-the-board tariffs was unlawful.
“The court does not pass upon the wisdom or likely effectiveness of the President’s use of tariffs as leverage,” the three-judge panel noted. “That use is impermissible... because \[federal law] does not allow it.”
The Trump administration immediately appealed the ruling, questioning the court’s jurisdiction. The case could eventually reach the US Supreme Court.
The White House defended the tariffs, calling trade deficits a “national emergency” that undermined American industry. A spokesperson argued that “unelected judges” should not override presidential decisions made in the national interest.
Financial markets welcomed the ruling, with the US dollar strengthening and stock futures rising globally.
The court’s decision stems from lawsuits filed by five small businesses and 13 US states, who argued the tariffs would hurt their operations. Oregon Attorney General Dan Rayfield, leading the states’ case, called the tariffs “reckless and economically devastating.”
Trump had invoked IEEPA — historically used for sanctions — to impose tariffs of up to 54 percent, aiming to pressure trading partners and reduce the US trade deficit. Legal experts say the ruling undermines this key pillar of Trump’s trade agenda.
At least five other lawsuits challenging the tariffs are still pending.
In a major decision, the Court of International Trade stated that only Congress has the constitutional power to regulate foreign commerce, and that Trump’s use of emergency powers under the International Emergency Economic Powers Act (IEEPA) to justify across-the-board tariffs was unlawful.
“The court does not pass upon the wisdom or likely effectiveness of the President’s use of tariffs as leverage,” the three-judge panel noted. “That use is impermissible... because \[federal law] does not allow it.”
The Trump administration immediately appealed the ruling, questioning the court’s jurisdiction. The case could eventually reach the US Supreme Court.
The White House defended the tariffs, calling trade deficits a “national emergency” that undermined American industry. A spokesperson argued that “unelected judges” should not override presidential decisions made in the national interest.
Financial markets welcomed the ruling, with the US dollar strengthening and stock futures rising globally.
The court’s decision stems from lawsuits filed by five small businesses and 13 US states, who argued the tariffs would hurt their operations. Oregon Attorney General Dan Rayfield, leading the states’ case, called the tariffs “reckless and economically devastating.”
Trump had invoked IEEPA — historically used for sanctions — to impose tariffs of up to 54 percent, aiming to pressure trading partners and reduce the US trade deficit. Legal experts say the ruling undermines this key pillar of Trump’s trade agenda.
At least five other lawsuits challenging the tariffs are still pending.
