A U.S. federal court has ruled that President Donald Trump overstepped his authority when he imposed global tariffs two months ago, delivering a major blow to a key element of the president’s economic policy.
The Court of International Trade ruled that an emergency law invoked by the White House does not grant the president unilateral authority to impose tariffs on nearly every country in the world.
The three-judge panel, based in Manhattan, determined that the U.S. Constitution grants Congress exclusive powers to regulate trade with foreign nations, and that this authority is not overridden by the president’s power to protect the national economy.
Minutes after the ruling was issued, the Trump administration filed an appeal.
“It is not the role of unelected judges to determine how to appropriately address a national emergency,” said White House Deputy Press Secretary Kush Desai in a statement. “President Trump is committed to putting America first, and the administration is determined to use every resource of the executive branch to address this crisis and restore American greatness,” he added.
The lawsuit in this case was brought by the Liberty Justice Center, a nonpartisan organization, on behalf of five small businesses that import goods from countries affected by the tariffs. It was the first major legal challenge to Trump’s so-called “Liberation Day” tariffs.
Exceeded Presidential Authority
In the ruling announced on Wednesday, the panel of judges declared that the International Emergency Economic Powers Act (IEEPA), a 1977 law cited by Trump to justify the global tariffs, does not grant him the power to impose them so broadly.
“The Global and Retaliatory Tariff Orders exceed any authority granted to the President by the IEEPA to regulate imports through tariffs. The Traffic Tariffs fail because they do not address the threats outlined in those orders,” the judges wrote.
Global financial markets have been unstable since Trump announced the sweeping tariffs on April 2, with some measures later reversed or scaled back as the White House negotiated with foreign governments.
The court’s ruling also blocks the tariffs Trump imposed earlier this year on China, Mexico, and Canada.
However, it does not affect the 25% tariffs on cars, auto parts, steel, or aluminum, which fall under Section 232 of the Trade Expansion Act—a different law from the one Trump invoked for his broader trade taxes.
This case is one of seven legal challenges to the Trump administration’s trade policies, alongside lawsuits filed by 13 U.S. states and other small business groups.
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