Federal Court Rebuke Could Upend Trump-Era Tariffs and Reshape U.S. Trade Posture
In a landmark ruling that reverberates through the core of U.S. trade law, the Court of International Trade has struck down President Donald Trump&rsquo;s expansive use of tariffs imposed under the guise of economic emergency powers. The ruling, issued in a consolidated judgment from two related cases, concluded that the International Emergency Economic Powers Act of 1977 (IEEPA) does not authorise the imposition of global tariffs as wielded by the Trump administration.
The judgment unequivocally nullifies the tariffs imposed under IEEPA, declaring that the Act does not bestow upon the Executive such broad trade authority. By doing so, the court reasserts Congressional primacy in matters of trade and customs, grounding its reasoning in the U.S. Constitution&rsquo;s clear allocation of tariff-setting powers to the legislative branch.
The ruling is especially consequential given the context: Trump&rsquo;s unilateral tariff measures, many of which were framed as retaliatory or national security-driven, became central to his administration&rsquo;s combative stance on global trade. These included duties levied on a wide array of imports from key partners including China, the EU, and others.
This judgment, effectively invalidating those tariffs, could unwind significant portions of the former administration's trade architecture. It also introduces immediate uncertainty into U.S. ports and markets, as importers and customs authorities grapple with the implications on in-transit goods and pending shipments.
From a legal perspective, the court&rsquo;s interpretation sets a firm boundary on presidential authority under IEEPA, which was historically reserved for economic sanctions and national security measures&mdash;not tariff policy. It will now fall to the Biden administration, or potentially higher courts, to determine the future of these tariff regimes.
Should this decision stand, it may curtail future presidents from circumventing Congress on trade issues under emergency pretexts. This recalibration could restore predictability to international commerce and reduce the risk of unilateral U.S. trade actions triggering retaliatory measures or WTO disputes.
Geopolitically, the ruling may also be welcomed by global trading partners who have long decried the Trump-era tariffs as violations of established norms. For international traders and diplomats alike, the decision signals a possible rebalancing of U.S. trade governance, returning it to a rules-based system anchored in statutory and constitutional checks.

Court ruling may dismantle Trump-era tariff regime, shaking U.S. trade policy and global markets.

Federal Court Blocks Trump’s Emergency Tariffs

Court ruling may dismantle Trump-era tariff regime, shaking U.S. trade policy and global markets.

May 29, 2025 | 11:17 IST

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