A U.S. federal court has struck down President Donald Trump’s broad-based global trade tariffs, dealing a significant setback to one of his key economic initiatives.
In a ruling by the Court of International Trade, the panel determined that an emergency statute invoked by the administration did not give the president unilateral authority to impose tariffs on nearly every country worldwide.
The New York-based court stated that under the U.S. Constitution, the power to regulate foreign commerce lies with Congress, and that authority could not be overridden by the executive branch, even under claims of economic emergency.
The White House has responded by requesting that the court delay implementation of the ruling while it pursues an appeal.
Who brought the legal challenge?
The decision stemmed from two separate lawsuits. One was filed by the Liberty Justice Center, a nonpartisan legal group representing small businesses that import goods affected by the tariffs. The other came from a group of U.S. state governments contesting the import duties.
These two cases mark the first major judicial test of Trump’s so-called "Liberation Day" tariffs. They were brought before the Court of International Trade, a federal court with jurisdiction over trade-related matters.
A three-judge panel concluded that the 1977 International Emergency Economic Powers Act (IEEPA), cited by Trump to justify his actions, does not give the president authority to impose sweeping tariffs across global markets.
The panel also blocked a separate set of duties that had been applied to goods from China, Mexico, and Canada. Those tariffs had been introduced as part of the administration’s efforts to curb drug trafficking and illegal immigration.
However, the court did not weigh in on tariffs tied to specific goods such as automobiles, steel, and aluminum, which were imposed under different legal statutes.
What has the response been?
The White House criticized the court’s decision, although President Trump has not yet commented publicly.
“It is not the role of unelected judges to dictate how the government should respond to a national emergency,” said deputy press secretary Kush Desai in a statement.
New York Attorney General Letitia James, whose state was part of the lawsuit, praised the outcome. “The law is unambiguous: no president has the unilateral power to raise taxes,” she said.
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