U.S. Court Halts Trump’s Global Tariffs, Citing Executive Overreach

A U.S. federal court has dealt a significant blow to Donald Trump’s trade agenda, ruling that the U.S. president exceeded his constitutional powers when he unilaterally imposed sweeping tariffs on global imports, including goods from China, Mexico, and Canada.

The Gaze reports on this with reference to CNN.

In a unanimous decision on Wednesday, a three-judge panel from the U.S. Court of International Trade in Manhattan issued a permanent injunction blocking the implementation of several tariff packages introduced by Trump under the International Emergency Economic Powers Act (IEEPA) – a Cold War-era law designed to respond to national emergencies, but which contains no explicit authorization for imposing tariffs. So the court found that the administration’s claims did not meet the legal threshold for an emergency and that the law could not be interpreted to grant tariff-imposing powers to the president.

The ruling also invalidates Trump’s so-called “Liberation Day Tariffs” announced on April 2, and blocks any further attempts to impose similar duties without congressional approval. The court granted the administration 10 calendar days to comply with the order.

The Trump campaign swiftly appealed the ruling on Wednesday evening, potentially sending the case to the Supreme Court and leaving the legal status of the tariffs in limbo. Until then, most of the duties, except for a small number of exemptions, are effectively suspended.

The lawsuit was brought by the “Liberty Justice Center,” a libertarian legal organization representing a group of small businesses, including wine importer VOS Selections. The plaintiffs argued that the tariffs caused significant financial damage and violated the Constitution by bypassing Congress’s exclusive authority over trade policy.

The court’s decision also covered a separate lawsuit filed by 12 Democratic state governments, reinforcing the argument that Trump’s tariff regime lacked both legal and constitutional grounds.

This landmark legal decision could reshape the boundaries of executive power in U.S. trade policy, and reaffirm the central role of Congress in regulating international commerce.

The court ruling comes amid escalating trade tensions. On May 23, Trump proposed a 50% tariff on imports from the European Union, citing stalled negotiations. Following a call with European Commission President Ursula von der Leyen, he agreed to postpone the tariffs until July 9 to allow more time for talks.

Read more on The Gaze: Will a U.S.–EU Trade War Break the Western Alliance?