A U.S. federal trade court has issued a landmark ruling halting former President Donald Trump’s blanket tariffs on international imports, declaring them illegal. The Court of International Trade ruled that Trump exceeded his executive authority by invoking emergency powers to justify across-the-board tariffs. According to the decision, only Congress has the constitutional authority to regulate international commerce, and that power cannot be overridden by presidential emergency declarations.
The court emphasized that its decision was not based on the effectiveness or wisdom of the tariffs but strictly on legal grounds. It concluded that the International Emergency Economic Powers Act (IEEPA), which Trump relied on, does not permit such sweeping economic actions unless tied directly to a national emergency with specific threats. As a result, the court issued a permanent injunction, requiring the administration to rescind all related tariff orders issued since January within ten days.
Although the ruling does not impact industry-specific tariffs on items like automobiles, steel, and aluminum—which were imposed under separate legal provisions—it represents a major legal setback for the Trump administration’s trade policies. The administration has already filed an appeal, setting the stage for further judicial review by higher courts, possibly reaching the U.S. Supreme Court.
