US Court Rules Trump 'Liberation Day' Tariffs Illegal

The U.S. Court of International Trade ruled that President Donald Trump's sweeping 'Liberation Day' tariffs exceeded his authority under the International Emergency Economic Powers Act (IEEPA), declaring them unconstitutional as they bypassed Congress's exclusive power to regulate trade. This ruling invalidated most tariffs imposed under Trump's national emergency declarations, though tariffs imposed under other laws, such as those on steel and aluminum, remain unaffected. The Trump administration swiftly appealed the decision, with White House officials condemning the ruling as a 'judicial coup' and asserting that unelected judges should not override executive decisions in national emergencies. The ruling sparked positive reactions in global financial markets, with major stock indices and futures rising on hopes of reduced trade-related uncertainty, while cryptocurrency markets showed more measured gains. The decision challenges Trump's broader trade policies and may impact ongoing and future trade agreements with countries like the UK, China, India, and the EU. Despite the court setback, the administration vows to continue efforts to enforce its trade agenda using executive powers.