A US trade court has blocked the controversial Trump tariffs that targeted imports from countries with large trade surpluses with America. The Court of International Trade ruled that former President Donald Trump exceeded his authority under emergency powers, dealing a blow to his economic playbook.
The decision brings relief to small business owners who rely on imported goods. The tariffs raised costs, disrupted supply chains, and created uncertainty. Many businesses had sued, saying they were unfairly punished for trade imbalances they didn’t cause.
The court’s ruling comes after Trump tried to justify the sweeping tariffs under the International Emergency Economic Powers Act (IEEPA)—a law meant to handle rare and extreme national threats, not routine trade deficits.
What the Court Actually Said
The judges made it clear: Congress, not the President, has the power to regulate foreign trade. The ruling said that the IEEPA cannot be used as a backdoor for blanket tariff powers. Giving the President such authority, the court noted, would be an “improper abdication” of legislative responsibility.
In plain terms: Trump can’t treat tariffs like tweets—fired off without limits.
The India-Pakistan Argument
In a surprising twist, the Trump team claimed the tariffs helped secure a ceasefire between India and Pakistan after a deadly terror attack in Kashmir. They told the court that rolling back the duties could “destabilize” a fragile global order.
The judges weren’t impressed. Geopolitical drama, they said, doesn’t justify violating the Constitution.
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What’s at Stake
Trump’s “Liberation Day” tariffs, announced on April 2, aimed to penalize trade partners like China and the EU with a 10% baseline. But the market backlash was swift. By mid-May, the administration had paused or softened many of the measures, claiming progress on a broader trade deal.
Still, multiple lawsuits followed—including one from 13 US states and another by the Liberty Justice Center, which represented small importers.
As of now, at least five other legal challenges to the Trump tariffs are pending. The administration has already filed an appeal.
The Bigger Picture
This ruling sets a clear limit: emergency powers are not a free pass for economic experiments. With global trade still in a delicate phase—and a July 7 deadline looming for ongoing negotiations—the pressure is back on Congress to lead the way.
White House adviser Stephen Miller called the ruling a “judicial coup” on social media. But for many businesses, it feels more like a constitutional course correction.
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