Washington: A US federal court has struck down a wide array of President Donald Trump’s tariffs, deeming them illegal as they exceeded presidential authority under tenets of American law.
The U.S. Court of International Trade found that the 10% blanket tariffs announced on what Trump called ‘Liberation Day’ last month – targeting nearly every major U.S. trading partner — were not legally justified under the International Emergency Economic Powers Act of 1977 (IEEPA).
Additionally, the court also struck down the separate tariffs targeting China, Mexico, and Canada — including a 25% duty on steel and aluminium and a 20% tariff linked to Chinese fentanyl trade, reported CBS News.
The court concluded that the IEEPA does not grant the president unlimited power to impose tariffs aimed at correcting trade imbalances, stating that such actions require congressional approval through normal legislative processes. “The court does not read IEEPA to confer such unbounded authority,” the judges wrote in their unanimous decision.
The financial response to the ruling was swift and yielded positive results, with major US indices seeing a rise. Stocks at S&P 500 surged 1.1% — up 67 points to 5,969 — while the Nasdaq Composite jumped 1.6%. Dow Jones futures rose 0.5%. Global markets followed suit, with Japan’s Nikkei 225 up 1.9% and Germany’s DAX climbing 0.5%.
The ruling represents a significant check on the executive branch’s trade authority and an endorsement of long-standing concerns that Trump’s tariffs lacked clear congressional backing. The three-judge panel, composed of appointees from Presidents Reagan, Obama, and Trump, ordered the administration to begin dismantling the tariffs within 10 days.
“Just when traders thought they’d seen every twist in the tariff saga, the gavel dropped like a lightning bolt over the Pacific,” said Stephen Innes of SPI Asset Management.
The Trump administration has vowed to appeal the decision, with White House spokesperson Kush Desai stating “The U.S.’s trade deficits with other countries have created a national emergency that has decimated American communities. It is not for unelected judges to decide how to properly address a national emergency.”
He added “President Trump pledged to put America First, and the Administration is committed to using every lever of executive power to address this crisis and restore American Greatness.”
The Trump tariffs have been a cornerstone of his economic policy and a key feature of his ‘America First’ motto. Part of a broader strategy by Washington to reduce its trade deficits and revive domestic manufacturing, the move has been a highly controversial issue.
Critics, which included not just the rival Democrats, but also coalition of business groups, economists, and even Republicans — have warned that the tariffs were detrimental to both economy and foreign relations, as they increased costs for American companies and consumers, while also straining diplomatic ties.
The ruling apart from just being a check on presidential authority could also prove to be a significant turning point for both the American, as well as the global economy, which is currently shrouded in uncertainty, owing to the tariffs.
UNI
