A federal court on Wednesday issued a ruling to freeze the majority of the sweeping tariffs imposed by President Trump on goods from virtually every foreign nation, asserting that these levies exceed the president’s legal authority.
The panel of judges on the U.S. Court of International Trade halted the widespread 10% tariffs that President Trump had assessed on goods from nearly all U.S. trading partners the previous month. The court also blocked a separate set of tariffs imposed by the Trump administration on imports from China, Mexico, and Canada, which the administration had justified by citing concerns over drug trafficking and illegal immigration.
Global markets reportedly showed positive reactions to the news of the court’s ruling.
The Trump administration had defended the tariffs by invoking the International Emergency Economic Powers Act of 1977 (IEEPA), which grants the president the authority to regulate imports during specific national emergencies. However, the court rejected the government’s interpretation of the law, stating that it would be unconstitutional for any legislation passed by Congress to grant the president such broad authority to unilaterally set tariffs.
In their ruling on Wednesday, the judges stated that IEEPA does not confer such unbounded authority and therefore the challenged tariffs imposed under the act were being set aside. The court specified that President Trump’s global 10% tariffs were not authorized by IEEPA because their purpose was to address trade imbalances between the U.S. and the rest of the world, which the judges determined should fall under non-emergency legislative action. Furthermore, the court found that the tariffs on China, Canada, and Mexico were not legally sound because they “do not deal with the threats set forth in those orders.”
The three judges who authored the ruling were nominees of former Presidents Ronald Reagan, Barack Obama, and Donald Trump (during his first term). The Trump administration indicated in court filings that it intends to appeal the ruling to the Federal Circuit Court of Appeals.
White House spokesperson Kush Desai responded to the ruling by defending the rationale behind the tariffs, stating that the U.S.’s trade deficits with other countries had “created a national emergency that has decimated American communities.” Desai asserted in a statement that it is not the role of unelected judges to determine how to address a national emergency and that President Trump is committed to using all available executive power to resolve this crisis and restore American Greatness.
Tariffs are a key component of President Trump’s agenda. He argues that these levies are necessary to bolster U.S. manufacturing and counter what he perceives as unfair trade practices. However, these measures have caused volatility in financial markets and have drawn criticism from Democrats as well as some Republicans.
While President Trump has maintained his support for the tariff strategy, he had previously paused many of the levies while vowing to negotiate with U.S. trading partners. A set of so-called “reciprocal” tariffs on numerous countries were temporarily suspended in April for at least three months. Goods covered under the U.S.-Mexico-Canada Agreement were exempted from 25% tariffs. Additionally, significant tariffs on Chinese goods have been reduced amid ongoing negotiations.
Meanwhile, the tariffs have been subject to lawsuits from various parties, including businesses and Democratic-led states. Wednesday’s ruling was related to two specific lawsuits: one from a group of businesses claiming harm from the tariffs and another from several states. Some of the legal challenges against the tariffs have invoked legal doctrines, often supported by conservative lawyers and judges, aimed at limiting the authority of executive branch agencies. These include the major questions doctrine, which requires clear congressional authorization for federal agencies to decide issues of major economic significance, and the nondelegation doctrine, which asserts that Congress cannot delegate its legislative power to the executive branch.
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