US Court Blocks Trump from Imposing Most Tariffs

Court Rules Trump Overstepped with Tariffs

A US court ruled that former President Donald Trump did not have the legal right to impose sweeping tariffs on foreign goods. The US Court of International Trade in Manhattan said Trump misused emergency powers under the International Emergency Economic Powers Act (IEEPA). The judges said this law does not allow the president to set global tariffs.

This ruling blocks tariffs Trump placed on goods from China, Mexico, and Canada. It also stops the 10% universal tariffs he applied to most imports. However, it does not affect auto or steel tariffs made under a different law.

Legal Challenge and Judge’s Statement

The case was filed by Liberty Justice Center on behalf of small companies like wine importer VOS Selections. The panel of three judges unanimously ruled that Trump exceeded his legal authority. They wrote, “IEEPA does not authorize any of the worldwide, retaliatory, or trafficking tariff orders.”

Attorney Jeffrey Schwab told CNN the ruling is a win for business owners and the Constitution. He said the president cannot use unlimited power to set tariffs whenever he wants.

Markets and Small Businesses Respond

Markets reacted quickly. CNBC reported that Dow futures rose over 500 points, while the Nasdaq and S&P 500 also went up. Many small businesses said the decision brings relief after struggling with high import costs.

Joe Brusuelas, chief economist at RSM US, said the ruling could help small firms that don’t have the funds to deal with long-term tariffs.

Tariffs Based on Emergency Powers

In April, Trump had announced new tariffs calling them “reciprocal.” He used IEEPA to justify them, saying they were a response to foreign threats like fentanyl trafficking. However, the court said he did not meet the legal standard of a national emergency. The law also does not list tariffs as an allowed action.

Legal experts said letting presidents use emergency powers like this would set a dangerous precedent. Plaintiffs argued that trade policy should be decided by Congress, not by a single leader.

White House Responds and Appeal Underway

Trump’s team has appealed the decision. The White House said unelected judges should not decide on national emergency actions. Officials also said Trump’s goal was to protect American interests.

White House aide Stephen Miller called the ruling a “judicial coup” on social media.

Could Reach the Supreme Court

The case might go to the Supreme Court if the appeal fails. Judges from different political backgrounds made this ruling, showing bipartisan agreement. The lawsuit also included a similar case brought by twelve Democratic-led states.

Oregon Attorney General Dan Rayfield said, “This ruling shows that trade decisions can’t be made on the president’s whim.”

What This Means Going Forward

The ruling does not change tariffs set under the Trade Expansion Act, such as those on steel and cars. But it does raise questions about the use of emergency powers in trade.

If the ruling holds, it may prevent future presidents from using emergency laws to change trade policy. Legal analysts say this could impact future campaigns, especially since Trump has promised more tariffs in a second term.