Federal Trade Court Strikes Down Trump’s Controversial Tariffs

A recent publication by the Court of International Trade has overturned a significant portion of President Donald Trump’s extensive tariffs, marking a substantial setback for one of his primary economic strategies. The court determined that Trump overstepped his bounds by invoking emergency powers to impose tariffs on imports from nearly every nation.

The three-judge panel concluded that the 1977 International Emergency Economic Powers Act (IEEPA) did not authorize the president to dictate trade policy independently of Congress. They stated, “The Worldwide and Retaliatory tariff Orders exceed any authority granted to the President by IEEPA to regulate importation through tariffs.”

While older tariffs related to national security—specifically those on steel,aluminum,and automobiles—remain intact,many others,including what were dubbed “Liberation Day” tariffs,have been halted.

Trump had positioned these tariffs as tools for negotiating trade agreements and claimed they would revitalize manufacturing jobs while decreasing the federal deficit. In response to this ruling, the White house promptly announced plans for an appeal. Spokesperson Kush Desai remarked that “trade deficits represent a national emergency… facts which were not contested by the court.”

For now though, sweeping import taxes cannot be enacted without congressional approval. The court made it clear that only elected officials hold the authority to manage trade regulations.

The lawsuits were initiated by twelve states alongside various small businesses who argued that these tariffs negatively impacted local economies. Oregon Attorney General Dan Rayfield expressed satisfaction with the ruling: “This decision reinforces our legal framework.” Similarly, New York Attorney General Letitia James emphasized that no president can unilaterally impose tax increases at will.

Additionally, another set of tariffs aimed at China, mexico, and Canada—justified by Trump’s management as necessary measures against drug trafficking and illegal immigration—was also blocked.

Considering this decision, financial markets reacted positively; U.S. stock futures surged while both the dollar strengthened and Asian markets opened higher than before.

Now facing a ten-day window to amend its orders in light of this ruling before potentially escalating matters to the Supreme Court level is an urgent task for Trump’s administration.