The U.S. Court of International Trade has struck down most of President Donald Trump’s sweeping “Liberation Day” tariffs, ruling he exceeded his authority under the International Emergency Economic Powers Act (IEEPA).
The court ruled that while the president has emergency powers to address “unusual and extraordinary threats,” those powers do not grant unlimited authority to impose broad tariffs without congressional approval. The ruling invalidates tariffs initiated since January under the IEEPA, which Trump invoked to address what he termed a “national emergency” caused by persistent U.S. trade deficits. However, the decision leaves intact other tariffs imposed under different legal authority, such as those on steel, aluminum, and autos based on national security concerns.
Trump’s “Liberation Day” tariffs, aimed at reducing trade deficits and pressuring countries like China, Canada, Mexico, and the European Union, had disrupted global markets, sparking volatility. The Trump administration argued that trade deficits represented a national emergency threatening U.S. industries and national security, while critics warn that the tariffs were unconstitutional, harmful to supply chains, inflationary, and damaging to both small businesses and American consumers.
Financial markets rallied on the news, but the Trump administration is appealing, with the case likely heading to the Supreme Court.
