A U.S. trade court has struck down the majority of former President Donald Trump’s tariffs, ruling that he exceeded his legal authority by imposing broad duties on imports from U.S. trading partners.
In a significant decision, the Court of International Trade determined that only Congress holds the constitutional power to regulate international commerce—a power that cannot be overridden by the president’s emergency economic authority.
“The court does not pass upon the wisdom or likely effectiveness of the President’s use of tariffs as leverage,” wrote the three-judge panel. “That use is impermissible not because it is unwise or ineffective, but because the law does not allow it.” The court issued a permanent injunction blocking Trump’s blanket tariff orders issued since January.
The ruling was welcomed by financial markets. The U.S. dollar surged against major currencies like the euro, yen, and Swiss franc, while Wall Street futures and Asian equities also climbed.
The court gave the Trump administration 10 days to issue new orders reflecting the injunction. In response, the administration filed an immediate notice of appeal and questioned the court’s jurisdiction.
The decision invalidates all Trump tariff actions taken under the International Emergency Economic Powers Act (IEEPA), a law meant for addressing “unusual and extraordinary” threats during national emergencies. However, the court did not rule on tariffs specifically targeting industries such as steel, aluminum, and automobiles, which were enacted under different legislation.
The ruling came from the Court of International Trade in Manhattan, which handles disputes involving U.S. trade and customs law. Appeals from this court go to the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., and may ultimately reach the Supreme Court.
Trump’s sweeping use of tariffs has been a cornerstone of his trade policy, contributing to global trade tensions and market volatility.