A federal court ruled Wednesday that Donald Trump does not have the authority under the 1977 International Emergency Economic Powers Act (IEEPA) to unilaterally impose sweeping global tariffs. The decision by the U.S. Court of International Trade invalidates key elements of Trump’s recent trade orders, including his “Liberation Day” tariffs.
The three-judge panel — appointed by Presidents Reagan, Obama, and Trump — unanimously concluded that the law does not delegate “unbounded” tariff power to the executive branch. “Any interpretation of IEEPA that delegates unlimited tariff authority is unconstitutional,” the court wrote. Tariffs authorized under Section 232, including on steel and aluminum, are unaffected.
Trump’s administration had used the law to justify emergency tariffs citing trade deficits and drug cartel activity. But judges ruled the law does not override Congress’ authority over import duties. The court rejected the administration’s argument that this was a political question outside judicial review.
The ruling blocks tariffs on imports from Canada, Mexico, China, and others. Trump officials vowed to appeal. Critics hailed the decision as a victory for constitutional checks and balances.
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