Overview

• A three-judge panel of the US Court of International Trade ruled on May 28 that Trump’s blanket tariffs exceeded authority under the International Emergency Economic Powers Act.
• The contested duties include a 10 percent levy on most imports alongside steeper tariffs on Canada, Mexico and China aimed at trade deficits and fentanyl trafficking.
• Challenges were filed by a coalition of 12 states and five small businesses represented by the Liberty Justice Center, arguing the president overstepped constitutional and statutory limits.
• The administration is reviewing fallback options under Section 122 of the Trade Act of 1974 and Section 338 of the Trade Act of 1930 to sustain its reciprocal tariff program.
• The prolonged legal fight has injected volatility into financial markets and prompted cautious responses from key trading partners, with the Supreme Court a possible final venue.