The Ruling
A federal trade court on Wednesday blocked President Donald Trump from imposing sweeping tariffs on imports under an emergency-powers law. The three-judge panel at the Court of International Trade ruled that Trump’s global tariffs were illegal Associated PressBloomberg
The court issued a summary judgment throwing out all the tariffs Trump imposed under the International Emergency Economic Powers Act (IEEPA), saying “The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder” Trump’s tariffs blocked by federal trade court
Scope of the Ruling
By blocking entirely most categories of tariffs, the court effectively wiped out most of the regime Trump put in place since taking office. The court ruled on “Worldwide, Retaliatory or Trafficking” orders, saying “The challenged Tariff Orders will be vacated and their operation permanently enjoined”
Legal Arguments
The lawsuit filed by five domestic businesses and twelve states argued that Trump exceeded his authority by declaring a national emergency. They claimed the “national emergency” was “a figment of his own imagination” and that “trade deficits, which have persisted for decades without causing economic harm, are not an emergency” CNBCReuters
The states argued Trump treated IEEPA as a “blank check” to regulate trade, incorrectly claiming it allows him to “set tariffs of any amount, on any country, for any length of time, and no court can review it” A dozen US states decry Trump’s “blank check” tariffs in lawsuit | Reuters
What This Means
Immediate Impact: With tariffed goods arriving at U.S. ports every day, the confusion over what’s in force and what to charge could throw imports into chaos
Scope: This appears to cover Trump’s “Liberation Day” tariffs imposed under IEEPA, but may not affect other tariffs imposed under different authorities (like Section 232 steel/aluminum tariffs)
Appeals: The Trump administration is expected to appeal. The ruling can now be appealed by the Trump administration in federal court Associated PressBloomberg
Political Implications
The U.S. Court of International Trade’s ruling could bring the administration’s trade war to a screeching halt
This ruling comes the same day Trump was confronted about “TACO trade” and defended his tariff strategy as “negotiation.”
Bottom Line
This is a devastating legal blow to Trump’s trade agenda that could invalidate most of his signature tariff policies. Combined with today’s “TACO trade” confrontation, it represents the biggest single-day challenge to Trump’s tariff authority since taking office.
This is the biggest tariff news story in months – a federal court has essentially ruled Trump’s use of emergency powers for tariffs was illegal and unconstitutional.
