Overview

• A three-judge panel of the U.S. Court of International Trade unanimously ruled that President Trump overstepped his authority under the International Emergency Economic Powers Act by imposing broad tariffs.
• The decision permanently vacates the April “Liberation Day” duties and related orders, blocks further collection of tariffs and directs refunds for duties already paid.
• Judges appointed by Presidents Trump, Reagan and Obama emphasized that the Constitution vests exclusive tariff-setting power in Congress and that IEEPA does not authorize unlimited import levies.
• Trump had invoked a national emergency over trade deficits to levy sweeping duties on imports from China, Canada, Mexico and other partners, triggering market volatility and multiple lawsuits.
• The ruling delivers a major setback to the administration’s trade agenda and is almost certain to be appealed, extending the legal battle over presidential tariff authority.