US Court Blocks Trump’s Broad Tariffs, Limits Executive Power

A U.S. federal trade court ruled that President Donald Trump exceeded his authority by imposing broad tariffs, known as the 'Liberation Day' tariffs, on imports from countries with trade surpluses with the United States, effectively halting most of these tariffs. The court emphasized that only Congress has the authority to impose tariffs, not the president via executive order or emergency powers, striking down the use of the International Emergency Economic Powers Act as justification. Hong Kong Financial Secretary Paul Chan expressed hope that the ruling would bring Trump 'to reason' and highlighted the importance of open trade negotiations, noting shifts in manufacturing supply chains and the vibrancy of Hong Kong’s IPO market. Australian officials, including Senator Don Farrell, also welcomed the court decision, describing the tariffs on Australian goods as unjustified and noting the ruling could influence ongoing trade relations. Legal experts believe the ruling could stabilize financial markets and the U.S. economy by removing the uncertainty caused by the trade war. However, some tariffs linked to national security concerns, such as those on steel and aluminum, will remain in place, and the ruling is expected to face further appeals.