In a landmark decision, the Court of International Trade held on Friday that President Donald Trump cannot rely on the International Emergency Economic Powers Act (IEEPA) of 1977 to impose sweeping tariffs on foreign goods. The unanimous three-judge panel concluded that IEEPA does not authorize the president to levy “unlimited tariffs” against almost every country, and immediately halted the contested duties.
Unpacking the Ruling on Trump’s National Emergencies
President Trump declared multiple national emergencies to justify his broad tariff actions. His administration argued that, under IEEPA, the president could respond to any perceived economic threat by raising import taxes. But the trade court disagreed.
“The question… is whether the International Emergency Economic Powers Act… delegates these powers to the President in the form of authority to impose unlimited tariffs on goods from nearly every country in the world,” the ruling states. “The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder.”
The opinion emphasized that the U.S. Constitution assigns tariff-setting powers to Congress, not the executive branch. By using IEEPA to impose duties, the court found, the president bypassed the legislative process.
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Plaintiffs and Lawsuits That Brought the Case Forward
Two related lawsuits challenged the president’s approach:
- Liberty Justice Center Suit: Filed on behalf of five small businesses, including a New York wine and spirits importer and a Virginia manufacturer of educational kits and musical instruments. They argued the tariffs affected their ability to compete and harmed American jobs.
- States’ Challenge: Brought by 13 states, this suit echoed claims that the administration’s actions exceeded IEEPA’s scope and damaged local economies dependent on imported inputs.
Both groups sought injunctive relief to prevent further tariff collection. The court’s decision grants exactly that.
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Impact on American Businesses and Trade Policy
Small importers will see immediate relief now that the tariffs blocked by the court are suspended. Those duties threatened to raise costs on everything from fine wines to classroom supplies. The ruling also sends shockwaves through U.S. supply chains, many of which rely on tariff-sensitive parts and raw materials.
Businesses previously stockpiled goods ahead of escalating duties. With the Court of International Trade intervention, companies can resume regular purchasing and budgeting cycles. Yet uncertainty remains until Congress or the White House clarifies long-term trade strategy.
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Reactions from the White House and Allies
White House spokesman Kush Desai denounced the decision:
“It is not for unelected judges to decide how to properly address a national emergency. President Trump pledged to put America First, and the Administration is committed to using every lever of executive power to address this crisis and restore American Greatness.”
Stephen Miller, Trump’s Deputy Chief of Staff, decried the outcome as a “judicial coup” on social media, signaling that the administration may appeal the ruling.
What’s Next for U.S. Trade Authority
The Court of International Trade’s ruling creates a constitutional turning point. Congress must decide whether to expand IEEPA’s language to permit emergency tariffs or to enact new legislation granting clear executive authority. Alternatively, the president could withdraw pending emergency declarations and pursue more narrowly tailored tariff actions under existing trade laws.
For now, the decision reaffirms that broad economic measures require congressional approval. It also underscores the judiciary’s role in checking executive overreach. As the next chapter unfolds in the U.S. Court of International Trade, stakeholders from agribusiness to manufacturing will watch closely, mindful that the outcome will shape America’s trade policy for years to come.
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