A federal court shot down most of President Trump’s wide-reaching tariffs Wednesday, ruling the commander in chief exceeded his authority when he plowed ahead with one of his signature policies.
The three-judge panel at the Court of International Trade in Manhattan assailed Trump’s actions against other countries across the globe as “contrary to law” – despite the president claiming emergency powers under the International Emergency Economic Powers Act allowed him to impose the controversial duties.
The court stated that Congress is typically responsible for issuing tariffs, not the president alone — and that Trump’s rationale for the exception to the rule didn’t meet the emergency act threshold to act unilaterally.
“The President’s assertion of tariff-making authority in the instant case, unbounded as it is by any limitation in duration or scope, exceeds any tariff authority delegated to the President under IEEPA,” the judges determined.
“The Worldwide and Retaliatory tariffs are thus ultra vires and contrary to law.”
The lawsuit was brought by the nonpartisan Liberty Justice Center on behalf of five small businesses that get goods from countries dinged by the White House’s tariff policy.
The president’s largest action since returning to the White House came when he imposed “Liberation Day” duties on April 2 in an effort to make up for the United States’ massive, decades-long trade deficits.
Trump fired off a 10% baseline tariff rate and then tacked on customized rates against nearly every country that rattled markets. His administration argued that tariffs were necessary to bring back manufacturing to US soil.
He went harder after Canada, China and Mexico, arguing the threat of steep tariffs was a way to convince the countries to stop the flow of illegal immigrants and dangerous drugs.
The administration slapped a 25% additional tariff on Canadian and Mexican imports and a 10% additional tariff on Chinese imports. He briefly jacked up the rate against China to 145% before going down to 30% while talks are ongoing between the two countries.
All of those tariffs were wiped out by the court ruling for now, with just a few specific policies remaining – sparking anger from the White House following the decision.
“The judicial coup is out of control,” Deputy Chief of Staff for Policy Stephen Miller wrote on X.
Trump has used the weight of tariffs as a strategy to broker new trade deals with other countries that would be more beneficial to the US. So far, he’s negotiated a deal with the United Kingdom, hashed out a preliminary agreement with China, and gotten the European Union to the table after threatening a 50% tariff on the 27-nation bloc.
His administration has argued that the tariffs are needed to help the country balance out its trade deficits.
White House spokesperson Kush Desai called the US’s trade deficits a national emergency “that has decimated American communities, left our workers behind, and weakened our defense industrial base — facts that the court did not dispute.”
“It is not for unelected judges to decide how to properly address a national emergency,” Desai stated, adding the administration is still “committed to using every lever of executive power to address this crisis and restore American Greatness.”
The Trump administration quickly filed a notice of appeal that could likely lead all the way to the Supreme Court to make a final determination.
The White House has insisted that only Congress, and not judges, can determine the “political” question on whether the president is allowed to declare emergency duties.
Wednesday’s ruling, however, didn’t affect all of Trump’s trade policies with a 25% tariff on most imported autos and parts, as well as foreign-made steel and aluminum, still in effect because Trump used his Section 232 powers from the Trade Expansion Act of 1962.
Several states that had sued had their case merged with the small business lawsuit in the ruling.
Oregon Attorney General Dan Rayfield, whose state led the charge, cheered the ruling.
“This ruling reaffirms that our laws matter, and that trade decisions can’t be made on the president’s whim,” he said.
An arch-nemesis of Trump, New York Attorney General Letitia James, also weighed in.
“A court just ruled in our favor and permanently stopped the Trump administration’s illegal tariffs,” she wrote online.
“This is a major victory for working families, businesses, and the rule of law.”
With Post wires.
