U.S. Trade Court Blocks Most Trump Tariffs, Citing Overreach of Executive Authority
In a sweeping decision, the U.S. Court of International Trade has ruled that President Donald Trump exceeded his authority in imposing broad tariffs on imports from key trading partners, issuing a permanent injunction against the majority of his post-January tariff orders.
According to Reuters, the court emphasized that the U.S. Constitution grants Congress exclusive power to regulate foreign commerce, a responsibility that cannot be overridden by emergency executive powers under the International Emergency Economic Powers Act (IEEPA). The IEEPA is intended for targeted responses to “unusual and extraordinary” threats—not blanket trade restrictions.
“The court does not pass upon the wisdom or likely effectiveness of the President’s use of tariffs as leverage,” the three-judge panel wrote. “That use is impermissible not because it is unwise or ineffective, but because federal law does not allow it.”
The ruling, which takes immediate effect, does not impact industry-specific tariffs implemented under different statutes—such as those affecting steel, aluminum, or autos.
Financial markets responded positively. The U.S. dollar surged, particularly against the euro, yen, and Swiss franc. Wall Street futures jumped, and equities across Asia followed with gains.
The Trump administration swiftly filed a notice of appeal and challenged the trade court’s authority. Officials have 10 days to issue new orders complying with the injunction, as mandated by the court.
The decision marks a significant legal challenge to the executive branch’s use of tariffs and sets the stage for a potential showdown at the U.S. Court of Appeals for the Federal Circuit, or ultimately, the Supreme Court.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
