US Court Blocks Bulk of Trump’s Tariffs, Administration Appeals
A federal court has ruled that former President Donald Trump overstepped his authority in imposing widespread tariffs, a decision that could reshape global trade if upheld.
The three-judge panel at the U.S. Court of International Trade issued a permanent injunction, halting Trump’s sweeping tariffs—including those against China, Mexico, and Canada—citing a lack of legal justification under emergency economic powers. The ruling specifically blocks Trump’s 30% tariffs on China, 25% on some Mexican and Canadian imports, and a universal 10% tariff on most goods entering the U.S. However, the court did not overturn his 25% tariffs on autos, auto parts, steel, or aluminum, which fall under different trade laws.
Trump’s administration swiftly appealed the decision, arguing that national security concerns warranted the tariffs. The ruling has temporarily put many of Trump’s trade measures on hold, but further legal battles—including a possible Supreme Court case—could ultimately decide their fate.
The lawsuit challenging the tariffs was filed by the Liberty Justice Center, representing small businesses that claimed they suffered financial strain due to increased import costs. In addition, twelve Democratic-led states filed a separate suit opposing the tariffs as unconstitutional tax hikes imposed without congressional approval.
Economic Impact & Stock Market Reaction
The court’s ruling has already sent waves through financial markets, with Dow futures rising by 1.1%, S&P 500 futures up 1.4%, and Nasdaq futures climbing 1.6% in after-hours trading. Analysts believe this decision, if upheld, could provide significant relief for small and medium-sized businesses that have struggled with inflated costs.
Meanwhile, Trump’s legal team insists that the courts should not override executive action in national emergencies, citing the need for strong trade policies to bolster American industries. Critics argue that Trump’s tariffs amounted to an unlawful power grab, imposing economic hardships on consumers and businesses.
As the case moves through the appeals process, the outcome could have far-reaching implications for U.S. trade policy and international relations. If the injunction holds, it could mark one of the most significant judicial checks on executive trade authority in recent history.