STORY
In a major rebuke of former President Donald Trump’s unilateral trade measures, the U.S. Court of International Trade today declared his 2 April 2025 “Liberation Day” tariffs illegal, finding he exceeded his authority under the International Emergency Economic Powers Act (IEEPA). A three-judge panel unanimously vacated the vast majority of the 10% baseline duty and higher reciprocal levies on goods from nations with significant trade surpluses, concluding that general trade imbalances do not qualify as an “unusual and extraordinary threat.”
The ruling stems from consolidated lawsuits brought by small businesses and 12 states challenging the emergency-powers orders. While the decision leaves in place sector-specific tariffs on steel and automotive imports—imposed under separate legal provisions—it blocks the broader, across-the-board duties that had rattled global markets and prompted immediate outcry from U.S. trading partners. Financial markets responded positively to the judgement, with U.S. stock indices edging higher and Asian equities following suit on relief that newly declared levies will not take effect. Opposition politicians and legal scholars hailed the verdict as a vital check on executive overreach, emphasising that power to impose wide-ranging tariffs resides with Congress, not the president acting unilaterally.
The Justice Department has pledged to appeal to the U.S. Court of Appeals for the Federal Circuit, insisting that the president possesses the right to safeguard national economic security. In the meantime, Trump has already paused further tariffs on the European Union and renegotiated certain duties with China to avert further disruption.