You Acted Beyond Your Powers on Tariffs U.S. Trade Court Blasts, Blocks Trump

The U.S. Court of International Trade has struck down a set of broad tariffs imposed by President Donald Trump’s administration, ruling that the executive branch exceeded its legal authority.

The decision marks a significant legal and political setback for Trump, whose aggressive trade agenda was a cornerstone of his presidency.

The court’s unanimous ruling invalidates the so-called “Liberation Day” tariffs, which imposed a baseline 10% duty on most imported goods and higher rates on imports from nations with large trade surpluses, such as China and the European Union.

The three-judge panel found that the Trump administration misused the International Emergency Economic Powers Act (IEEPA), a law designed to address foreign threats to national security, not to manage trade imbalances.

“The economic conditions cited do not constitute an unusual or extraordinary threat under the IEEPA,” the court stated, emphasizing that the Constitution gives Congress, not the president, the power to regulate foreign commerce. The decision stems from the case V.O.S. Selections, Inc. v. United States, brought by a coalition of businesses and a dozen U.S. states. The plaintiffs argued that the tariffs inflicted serious financial harm and were enacted without proper congressional authorization.

The court’s decision applies specifically to the tariffs imposed under IEEPA and does not affect other Trump-era trade actions based on different statutes, such as Section 301 tariffs on Chinese goods and Section 232 tariffs on steel and aluminum. Still, the ruling sharply limits the scope of presidential power to unilaterally impose broad economic measures under emergency powers.

A spokesperson for former President Trump called the decision “a disastrous ruling by unelected judges undermining America’s sovereignty” and confirmed plans to appeal. “President Trump acted to defend American workers.

This ruling ties the hands of future presidents to protect the U.S. economy,” the campaign said in a statement.

Financial markets responded positively to the ruling, with stocks gaining on expectations that the rollback of tariffs could ease global supply chain disruptions and lower costs for businesses and consumers. Analysts suggested that the decision could reduce inflationary pressures and stabilize trade relations with key partners.

The ruling also carries significant political implications. Trump, who remains a leading figure in the Republican Party and is campaigning for a return to the presidency, now faces a legal rebuke of one of his hallmark policy initiatives. The decision also opens the door for the Biden administration and Congress to reshape U.S. trade policy through legislative channels rather than executive action.

The court’s move marks a rare judicial intervention in trade policy and underscores the importance of constitutional checks and balances.

As legal scholars noted, it sets a precedent that could restrain future presidents from using emergency powers to bypass Congress in matters of economic governance.

This decision may have lasting implications for how the United States approaches trade, reaffirming the central role of Congress in crafting long-term economic strategy and reinforcing the limits of presidential authority in a constitutional democracy.