News Brief
Big Setback For Trump As Trade Court Blocks US President's Global Tariff Push—All About It
US President Donald Trump (File Photo)
A United States trade court on Wednesday (28 May) halted President Donald Trump’s ‘Liberation Day’ tariffs, saying he exceeded his authority by imposing blanket duties on nations with trade surpluses against the US, NDTV reported.
Trump had cited the International Emergency Economic Powers Act (IEEPA) to justify the tariffs, asserting it gave him sweeping authority to counter global trade imbalances as "unusual and extraordinary" threats during a national emergency.
The administration urged the court that overturning the tariffs could disrupt the course of an “asymmetric” trade truce with China and revive the India-Pakistan conflict.
White House officials had earlier said that Trump’s use of tariff leverage played a key role in securing a ceasefire between India and Pakistan following a terror attack by Pakistan-based terrorists in Jammu and Kashmir's Pahalgam on April 22.
They added that ongoing trade talks with multiple nations were at a sensitive juncture, with a 7 July deadline set for finalising agreements.
The Court of International Trade rejected all of the Trump team’s arguments, ruling that Congress did not delegate "unbounded" powers to the President under IEEPA.
The court clarified that the law authorises the president to impose necessary economic sanctions during an emergency "to combat an unusual and extraordinary threat".
The ruling emphasised that under the US Constitution, only Congress has the exclusive power to regulate foreign trade—a mandate that cannot be overridden by presidential emergency powers.
"The court does not pass upon the wisdom or likely effectiveness of the President's use of tariffs as leverage. That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it," the court said in the decision.
The bench concluded that any reading of IEEPA suggesting boundless tariff powers is unconstitutional.
Trump cited IEEPA when Trump said trade deficits and the threat posed by Mexican drug cartels justified widespread tariffs.
Following the decision, the Trump administration immediately moved to appeal.
On 2 April , Trump announced sweeping tariffs starting at 10 per cent, targeting nations with large trade surpluses against the US—especially China and the EU.
Markets reacted sharply, prompting the administration to pause many of the targeted tariffs just a week later to stabilise investor sentiment.
By 12 May, the US and China agreed to a mutual 90-day tariff reduction while broader negotiations continued toward a long-term settlement.
The court’s decision stemmed from two suits—one from five small import-reliant firms represented by the Liberty Justice Center, and another from 13 US states—all citing business harm from the tariffs.
At least five more legal challenges against the Trump tariffs remain active in courts.
