Court Battle Reinstates Trump 'Liberation Day' Tariffs

A federal court ruled that President Donald Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) by imposing the 'Liberation Day' tariffs, siding with small businesses and state attorneys general who argued the tariffs were unlawfully broad and economically damaging. However, the U.S. Court of Appeals has temporarily reinstated the tariffs while the case is under review, contributing to significant instability for businesses and markets. Critics, including economists and politicians from both parties, claim the tariffs have depressed CEO confidence, slowed economic growth, and strained U.S. manufacturers and retailers. The ongoing legal dispute has heightened fears of recession and complicated international trade negotiations. Despite adverse rulings, the White House asserts it has several legal options to continue its protectionist policies. The case could still reach the Supreme Court, leaving U.S. trade policy in a state of uncertainty.