A U.S. federal judge has ruled that former President Donald Trump exceeded his legal authority in imposing broad tariffs that increased import costs for both businesses and consumers. The ruling, issued by a three-judge panel of the U.S. Court of International Trade, blocks tariffs on goods from China, Mexico, and Canada aimed at addressing fentanyl shipments, and halts a general 10% tariff on most imports.
The court found that Trump’s use of emergency economic powers under the International Emergency Economic Powers Act (IEEPA) to justify the tariffs was unlawful, as IEEPA does not explicitly authorize tariffs. The ruling suspends tariffs of 30% on Chinese goods and 25% on goods from Canada and Mexico. However, it does not affect existing tariffs on automobiles, auto parts, steel, or aluminum, which were imposed under a separate legal basis.
The lawsuit, filed by the Liberty Justice Center on behalf of several businesses, argued that the tariffs harmed their operations. The court unanimously agreed, stating that Trump lacked the authority to impose the tariffs, even under a declared national emergency.
The Justice Department, representing the government, has appealed the decision, arguing that the issue is political and beyond the court’s jurisdiction. The plaintiffs hope the appeals court will uphold the ruling. The decision prompted a rise in stock futures. The case could ultimately reach the Supreme Court.
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