A United States trade court has ruled that President Donald Trump overstepped his authority by imposing broad tariffs on imports from US trading partners, Al Jazeera reports.
The Court of International Trade in New York issued a permanent injunction immediately halting these tariffs and ordered the government to respond within 10 days.
The court stated that under the US Constitution, Congress holds exclusive power to regulate international commerce, a power that cannot be overridden by the president’s emergency economic powers. The ruling focused on tariffs imposed under the International Emergency Economic Powers Act (IEEPA), which is intended for rare national emergencies, and struck down orders issued since January. Tariffs targeting specific sectors like steel and aluminum under other laws were not affected.
A three-judge panel clarified that their decision was not based on the tariffs’ effectiveness or wisdom, but on legal grounds stating such broad tariffs exceed presidential authority.
The Trump administration promptly appealed, arguing that trade imbalances pose a national crisis and that courts should not interfere with executive decisions on emergencies. A White House spokesperson defended the tariffs as essential to protect US industry and security.
This ruling creates significant uncertainty for ongoing trade negotiations with key partners such as the European Union and China. The Court of International Trade’s decisions can be appealed to the US Court of Appeals for the Federal Circuit, and potentially to the Supreme Court.
The legal challenge came through lawsuits from the Liberty Justice Center representing five small US import businesses and 12 US states. The plaintiffs argued the tariffs harm their business operations. At least five other lawsuits contesting the tariffs remain pending.