Federal court blocks President TRUMP’s tariffs in sweeping ruling

Thursday, May 29, 2025 - A U.S. trade court has blocked most of US President Donald Trump's tariffs in a sweeping ruling that found the president overstepped his authority by imposing across-the-board duties on imports from U.S. trading partners.

The Court of International Trade said the U.S. Constitution gives Congress exclusive authority to regulate commerce with other countries that is not overridden by the president's emergency powers to safeguard the U.S. economy.

"The court does not pass upon the wisdom or likely effectiveness of the President's use of tariffs as leverage," a three-judge panel said in the decision to issue a permanent injunction on the blanket tariff orders issued by Trump since January. "That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it."

Financial markets cheered the ruling. The U.S. dollar rallied following the court's order, surging against currencies such as the euro, yen, and the Swiss franc in particular. Wall Street futures rose and equities across Asia also jumped.

The judges also ordered the Trump administration to issue new orders reflecting the permanent injunction within 10 days. The Trump administration minutes later filed a notice of appeal and questioned the authority of the court.

The court invalidated with immediate effect all of Trump's orders on tariffs since January that were rooted in the International Emergency Economic Powers Act (IEEPA), a law meant to address "unusual and extraordinary" threats during a national emergency.

The court was not asked to address some industry-specific tariffs Trump has issued on automobiles, steel, and aluminium, using a different statute.

The decisions of the Manhattan-based Court of International Trade, which hears disputes involving international trade and customs laws, can be appealed to the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., and ultimately the U.S. Supreme Court.

Trump has made charging U.S. importers tariffs on goods from foreign countries the central policy of his ongoing trade wars, which have severely disrupted global trade flows and roiled financial markets.