US Trade Court Blocks Trump’s ‘Liberation Day’ Tariffs

The U.S. Court of International Trade ruled that President Trump exceeded his authority by imposing the 'Liberation Day' global tariffs, stating that the International Emergency Economic Powers Act (IEEPA) does not grant the president unlimited power to impose tariffs on imports from nearly every country. The court emphasized that Congress holds exclusive authority to regulate commerce and that Trump's use of emergency powers to enforce broad tariffs on nations such as China, Canada, and Mexico was unlawful. The tariffs, which were part of Trump's trade policy to address trade deficits and retaliate against countries perceived as not acting on drug trafficking, had caused economic uncertainty and were challenged in multiple lawsuits arguing the trade deficit did not constitute the 'unusual and extraordinary threat' required under IEEPA. Despite some tariffs being reduced or delayed, the court's decision blocks their enforcement, highlighting the constitutional limits on presidential tariff powers. This ruling presents a significant setback for Trump's agenda to use tariffs as a tool for economic protectionism and trade negotiation leverage. The decision was supported by five small U.S. businesses that import goods from the targeted countries, further underscoring the impact on American commerce.