US Trade Court Blocks Most Trump Tariffs, Citing Overreach of Authority

US Trade Court Blocks Most Trump Tariffs, Citing Overreach of Authority

Following the ruling, the White House criticised the decision, contending that unelected judges should not interfere with the matter and immediately filed an appeal against the verdict.

RMN News Trade Desk
May 29, 2025

A US trade court has blocked the implementation of most of Donald Trump’s tariff measures, ruling that he overstepped his authority under the International Emergency Economic Powers Act (IEEPA). The decision, which consolidated multiple lawsuits, invalidates tariffs imposed on countries including Canada, Mexico, and China that were based on emergency powers.

The court determined that the IEEPA does not grant the President extensive or unlimited authority to impose tariffs on goods from nearly every country in the world. According to the three-judge panel’s collective unsigned decision, granting such “unbounded authority” through any interpretation of IEEPA would violate constitutional principles. The judges clarified that IEEPA permits presidential action to enforce essential economic sanctions during emergencies specifically to address exceptional and extraordinary threats, not to impose unlimited tariffs.

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Businesses and state government alliances had filed independent cases contending that the President had encroached upon Congress’s power of the purse. The court ruling highlighted that the tariffs failed to address their intended objectives, and the states argued that persistent US trade deficits over 49 years hardly constituted an immediate emergency warranting such action under emergency powers. The Court of International Trade panel of three judges determined that Trump had overstepped his presidential authority, invalidating most trade restrictions implemented during his tenure since January.

The verdict is being seen as a considerable obstacle for Trump’s efforts to reshape America’s trade relations globally. The reciprocal tariffs, intended to penalise countries with trade surpluses, had caused significant instability in global financial markets. While Trump maintained that trade deficits and drug import concerns constituted a “national emergency” justifying widespread tariff implementation, the court disagreed with the scope of authority under IEEPA.

Following the ruling, the White House criticised the decision, contending that unelected judges should not interfere with the matter and immediately filed an appeal against the verdict. A senior White House adviser close to Trump reportedly described the ruling on social media as a “judicial coup” that was “out of control”.

The court ruling provided a 10-day window for the White House administration to finalise administrative procedures required to cease the tariff implementation invalidated by the decision.

However, the ruling noted that other Trump-era tariffs remain valid, specifically those on foreign steel, aluminum, and automobiles. These particular levies were established through a different legal framework, requiring a Commerce Department investigation rather than presidential discretion under IEEPA.