Federal court rules Trump exceeded authority with tariffs, blocks key parts of policy as unconstitutional

A federal court in the United States blocked a significant portion of former President Donald Trump’s tariff policy on Wednesday, ruling that he exceeded his authority in imposing tariffs on imports from several countries. The decision came from a three-judge panel of the U.S. Court of International Trade, which found that Congress did not grant the president “unlimited” power under the International Emergency Economic Powers Act of 1977 (IEEPA).

The judges stated that Trump’s global and retaliatory tariff orders went beyond any authority given to the president by the IEEPA to regulate imports through tariffs. The court’s order blocks tariffs imposed by Trump under this law, including global and “reciprocal” tariffs announced on April 2, which he called “Liberation Day,” as well as earlier tariffs targeting Canada, Mexico, and China.

The order described Trump’s tariff policy as “unconstitutional,” blocking it by stating that measures subject to the IEEPA must be “suspended and their operation permanently prohibited.” Most of the tariffs covered by the order had already been paused after stock markets reacted with sharp declines. On April 9, Trump decided to maintain only 10% tariffs for 90 days while seeking agreements with each country.

The court’s decision followed two separate lawsuits filed by companies and states. The judges argued that Trump violated the Constitution by overstepping his powers regarding import tariffs under legislation passed by Congress. A White House spokesperson, Kush Desai, said there would be an appeal against the ruling. In a brief statement to CNBC, Desai argued that “it is not the job of unelected judges to decide how to properly address a national emergency.” He repeated Trump’s claim that other countries have contributed to the U.S. trade deficit, creating a national emergency that has harmed American society, workers, and industry—points the court did not dispute.

The three judges on the panel were appointed by Trump, Ronald Reagan, and Barack Obama, according to The Hill. Wall Street responded positively to the court’s decision to block the tariff policy, which had been a recurring concern for investors due to uncertainty about its implementation. Major market indicators rose more than 1% in after-hours trading following the New York Stock Exchange’s close. The ruling marks a significant development in ongoing debates over presidential authority in trade policy and its impact on both domestic industries and international relations.