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yesterday

Trade Court Blocks Trump's 'Liberation Day' Tariffs for Exceeding Authority

The ruling underscores limits on emergency tariff powers by setting aside the sweeping duties under the International Emergency Economic Powers Act.

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U.S. President Donald Trump holds up a chart while speaking during a “Make America Wealthy Again” trade announcement on April 2, 2025 in Washington, DC.
US President Donald Trump holds a chart next to US Secretary of Commerce Howard Lutnick as Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., U.S., on April 2 (REUTERS)
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Overview

  • A three-judge panel of the US Court of International Trade ruled on May 28 that President Trump's 'Liberation Day' import duties exceed the authority granted by IEEPA and permanently enjoined their enforcement.
  • The decision does not affect existing tariffs on steel, aluminum and automobiles imposed under separate statutory provisions.
  • The Trump administration filed an immediate appeal to the US Court of Appeals for the Federal Circuit and pledged to defend its use of emergency powers for trade policy.
  • Financial markets rallied on the news, with US stock index futures and key international equities gaining ground after the verdict.
  • The court gave the government ten days to issue administrative orders reflecting the permanent injunction and noted at least five related legal challenges remain pending.