Overview

• A three-judge panel ruled on May 28 that President Trump exceeded his powers under the International Emergency Economic Powers Act by enacting broad reciprocal tariffs.
• The decision vacates most of the April 2 “Liberation Day” duties on imports from China, Canada and Mexico while leaving in place sectoral tariffs under Section 232 of the Trade Expansion Act.
• The court gave the administration ten days to issue orders undoing the challenged tariffs and on the same day the White House filed a notice of appeal.
• Financial markets cheered the ruling, sending the US dollar higher against major currencies and boosting stock futures on hopes of curbed trade barriers.
• The injunction casts doubt on pending trade talks—including the UK agreement—and could be reviewed by appeals courts or the Supreme Court if the legal fight continues.