Court Blocks Trump’s Sweeping Tariffs

A U.S. trade court has blocked most of the tariffs imposed by U.S. President Donald Trump, delivering a sweeping ruling that found he had overstepped his authority by enacting broad duties on imports from U.S. trading partners.

The Court of International Trade determined that the U.S. Constitution grants Congress exclusive authority to regulate commerce with other nations, which is not overridden by the president’s emergency powers aimed at safeguarding the U.S. economy.

“The court does not pass upon the wisdom or likely effectiveness of the President’s use of tariffs as leverage,” a three-judge panel said in the decision to issue a permanent injunction on the blanket tariff orders issued by Trump since January.

“That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it.”

Financial markets responded positively to the ruling, with the U.S. dollar surging against major currencies including the euro, yen, and Swiss franc. Wall Street futures climbed, and equities across Asia also saw gains.

The judges ordered the Trump administration to issue revised orders reflecting the permanent injunction within 10 days. However, the administration quickly filed a notice of appeal and questioned the court’s authority.

The ruling invalidated, with immediate effect, all of Trump’s tariff orders issued since January under the International Emergency Economic Powers Act (IEEPA), a law intended to address “unusual and extraordinary” threats during national emergencies.

The court did not review certain industry-specific tariffs Trump has implemented on automobiles, steel, and aluminum, which were enacted under a different statute.

Decisions by the Manhattan-based Court of International Trade, which addresses disputes involving trade and customs laws, can be appealed to the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., and potentially to the U.S. Supreme Court.

Trump has made imposing tariffs on U.S. importers of goods from foreign nations a central policy of his ongoing trade wars, which have significantly disrupted global trade and unsettled financial markets.