US Court Blocks Trump’s Tariffs—marking a turning point in America’s trade war narrative and delivering a stunning legal defeat to one of Donald Trump’s most aggressive economic policies.
In a powerful rebuke, the US Court of International Trade ruled that the sweeping tariffs rolled out by the Trump administration overstepped constitutional boundaries. The Manhattan-based court made it clear: regulating international commerce is Congress’s job—not the president’s.
According to the judges, the emergency powers cited by the White House simply didn’t give the green light for tariffs to be imposed on nearly every US trading partner. Within minutes of the ruling, the Trump team filed an appeal.
Who Challenged the Tariffs?
The turning point came thanks to two major lawsuits. One was brought by the Liberty Justice Center on behalf of small businesses struggling under the weight of the tariffs. The other came from a group of US state governments. Both aimed what former President Trump had dubbed his “Liberation Day” tariffs—steep import taxes that hit countries like China, Mexico, and Canada especially hard.
The three-judge panel unanimously agreed: the International Emergency Economic Powers Act (IEEPA) of 1977 does not give the president unlimited power to set tariff policy. That’s why the court firmly ruled that US Court Blocks Trump’s Tariffs—stripping them of legal standing.
Beyond Trade — A Constitutional Showdown
The court didn’t stop there. It also struck down separate tariffs linked to the administration’s crackdown on what it called the “unacceptable” flow of drugs and undocumented immigrants into the US.
Still, not every tariff was up for debate. Duties on specific goods like cars, steel, and aluminum—covered under different legislation—remain untouched for now.
How Are People Reacting?
The White House didn’t hold back. While Trump hasn’t personally commented yet, his deputy press secretary, Kush Desai, lashed out at the court.
“It is not for unelected judges to decide how to properly address a national emergency,” he said.
“President Trump pledged to put America First, and this administration will use every tool available to uphold that promise.”
On the other side of the spectrum, praise rolled in. New York Attorney General Letitia James welcomed the court’s decision without hesitation.
“There’s no gray area here,” she said. “Presidents can’t just slap on taxes whenever they feel like it. These tariffs quietly squeezed working families, made life harder for businesses, and put American jobs on the line. I see this ruling as a clear victory—for fairness and the economy.”
Markets Sigh with Relief
Globally, financial markets responded with relief. As soon as the news broke that US Court Blocks Trump’s Tariffs, stock markets across Asia bounced. US stock futures surged, and even the dollar rallied against traditionally safe currencies like the Japanese yen and Swiss franc.
Stephen Innes of SPI Asset Management captured the sentiment perfectly:
“The Oval Office isn’t a trading desk, and the Constitution isn’t a blank cheque.”
He added that the ruling signals a possible end to executive overreach, bringing some much-needed macroeconomic stability—at least for now.
What Comes Next?
So, what’s the next move? The White House has just ten days to begin officially dismantling the tariffs, though many are already suspended. The legal battle isn’t over yet—an appeals process is already underway. And a higher court, some suggest, might take a more Trump-friendly stance.
Still, if the ruling stands, businesses that paid these levies could get refunds—with interest. These include the infamous reciprocal tariffs, which had once hit 145% on Chinese goods and now hover around 30%.
Former CBP official John Leonard told the BBC that for now, tariffs must still be paid. No changes at the borders—yet.
A Flashback to April
It all began on April 2, when Trump launched an unprecedented global tariff plan. A blanket 10% tax hit most imports. Even steeper levies were handed to longtime allies like the UK, Canada, and the EU.
Trump pitched it as a strategy to revive American manufacturing and shield domestic jobs. But chaos quickly followed. Global markets teetered. Negotiations stalled. And a drawn-out trade war with China took center stage, peaking with tit-for-tat tariffs as high as 145% on both sides.
Eventually, a fragile truce was reached. The US dialed back its duties on Chinese goods to 30%. China followed suit, reducing some tariffs to 10%. Meanwhile, the UK and US announced a deal to ease trade tensions.
Trump, ever the negotiator, even threatened a 50% tariff on all EU imports—only to extend the deadline after EU Commission President Ursula von der Leyen asked for more time.
A Legal Milestone with Lasting Impact
The message is loud and clear: US Court Blocks Trump’s Tariffs, reinforcing the Limits of executive power and Reviving the importance of Checks and Balances in US trade policy.
With the court fight far from over, businesses, investors, and foreign leaders are keeping a close eye on the outcome. After all, the next steps won’t just affect the US economy—they could rewrite the rules of global trade for years to come.
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