Federal court blocks Trump tariffs used under emergency powers

A federal court blocked President Donald Trump’s use of emergency powers to impose reciprocal tariffs on imports Wednesday, according to a court filing.

In April, Trump declared a national emergency to issue broad reciprocal tariffs against several countries, raising rates on those with higher tariffs against the U.S. However, a three-judge panel on the New York-based Court of International Trade ruled the International Emergency Economic Powers Act (IEEPA) does not “authorize any of the Worldwide, Retaliatory, or Trafficking Tariff Orders.”

“The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs. The Trafficking Tariffs fail because they do not deal with the threats set forth in those orders,” the ruling states.

“This conclusion entitles Plaintiffs to judgment as a matter of law; as the court further finds no genuine dispute as to any material fact, summary judgment will enter against the United States,” the ruling continued. “The challenged Tariff Orders will be vacated and their operation permanently enjoined.”

Labeling the tariff announcement “Liberation Day,” Trump said the goal was to bring back America’s wealth by setting a baseline tariff of 10%, with countries like China facing higher rates. Following the announcement, the administration was hit with several lawsuits claiming the president had exceeded his authority.

Plaintiffs in the case argued the 1977 IEEPA authorizes the use of tariffs, but the judges said, “There is no question here of narrowly tailored relief.”

Notably, after Trump’s “Liberation Day,” the U.S. and China entered into a tariff war, with the U.S. slapping a 145% tariff on China. Since then, U.S. Treasury Secretary Scott Bessent has held initial talks with China and other countries to negotiate new trade deals.

According to Reuters, the Trump administration has already filed a notice of appeal. The Department of Justice previously argued the lawsuits against Trump’s tariffs should be dismissed, claiming the plaintiffs were not harmed by the issue, the outlet reported.

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