A U.S. trade court has struck down most of President Donald Trump’s tariffs, ruling he exceeded his authority by imposing sweeping duties on imports under emergency powers.
The Court of International Trade said only Congress has the constitutional power to regulate international commerce. A panel of three judges issued a permanent injunction, stating that Trump's blanket tariffs violated federal law—not because they were unwise, but because the law doesn’t permit such use.
The decision invalidates all Trump tariff orders since January made under the International Emergency Economic Powers Act (IEEPA), which is typically used for sanctions during national emergencies. The ruling doesn’t apply to tariffs on steel, aluminum, or cars issued under different legal grounds.
The court gave the Trump administration 10 days to revise its orders. Officials immediately filed an appeal, arguing the court lacked the authority to challenge the president’s emergency decisions.
The decision stems from lawsuits filed by several U.S. states and small businesses, who argued the tariffs were harmful and unlawful. Plaintiffs included a wine importer and a maker of educational kits, who said the tariffs hurt their operations.
Critics, including Oregon Attorney General Dan Rayfield, said the decision reinforces the limits of presidential power, calling the tariffs reckless and damaging to the economy.
The White House defended the tariffs, calling the trade deficit a national emergency. A spokesperson claimed it was not the role of unelected judges to dictate how to handle such crises.
Markets responded positively. The U.S. dollar strengthened, and global stocks rose. However, the ruling threatens Trump’s tariff-centered trade strategy and complicates ongoing talks with China, the EU, and others. Trump has argued that tariffs would bring jobs back and reduce the U.S. trade deficit, but this court decision could force a shift in approach if the ruling is upheld.