Federal Court Blocks Trump’s Tariffs, Finding the President Overstepped His Authority
Court Blocks Trump Tariffs, Citing Presidential Overreach
Updated May 29, 2025
A federal court has halted President Donald Trump’s sweeping tariffs, determining that the emergency powers invoked by the management do not authorize the president to impose duties on goods from nearly every U.S. trading partner. The ruling casts doubt on the future of Trump’s trade policy and its impact on global markets.
The U.S. Court of International Trade, based in New York, concluded that Congress holds exclusive authority over international commerce. The court found that the International Emergency Economic Powers Act of 1977 (IEEPA), the basis for Trump’s tariffs, does not grant the president “unbounded” authority to impose such duties. This decision directly challenges the administration’s use of emergency powers to enact trade policy.
“An unlimited delegation of tariff authority would constitute an improper abdication of legislative power to another branch of government,” the court stated in its opinion. The panel ruled that the tariff orders would be vacated and their operation permanently stopped.
White House spokesperson Kush Desai said that trade deficits amount to a national emergency “that has decimated American communities, left our workers behind, and weakened our defense industrial base — facts that the court did not dispute.”
Desai added that the administration remains committed to using every executive power to address this crisis and restore American greatness. The administration views reducing the trade deficit as a key component of its economic agenda.
Trump has repeatedly stated that the tariffs would bring manufacturing jobs back to the U.S. and reduce the federal budget deficit. However, sence the announcement of the “Liberation Day” tariffs in April, global financial markets have experienced volatility, and many business leaders have voiced concerns about potential economic damage. The tariffs and trade policy have been a source of uncertainty for businesses and investors alike.
The president has repeatedly delayed the enforcement of certain rates, most recently postponing a 50% duty against the European Union until july at the earliest. This delay has added to the uncertainty surrounding the administration’s trade policies.
The panel that issued Wednesday’s ruling included Timothy Reif, a Trump appointee; Jane Restani, appointed by President Ronald Reagan; and gary Katzman, an appointee of President Barack Obama. The bipartisan composition of the panel underscores the legal questions surrounding the tariffs.
The ruling was in response to lawsuits filed by the Liberty Justice Center, representing small U.S. businesses harmed by the tariffs, and a group of 12 states led by Oregon. These legal challenges highlight the widespread opposition to the tariffs from various sectors of the economy.
Oregon Attorney General Dan Rayfield said in a statement, “This ruling reaffirms that our laws matter, and that trade decisions can’t be made on the president’s whim.”
What’s next
The White House is expected to appeal the ruling, perhaps setting the stage for a protracted legal battle over presidential authority and trade policy. The future of U.S.trade relations and the impact on global markets remain uncertain.