29 May 2025 , 06:39
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A U.S. federal trade court has ruled that tariffs imposed by President Donald Trump were unconstitutional, stating that the president overstepped his authority.
According to Financial Times, Bloomberg, Politico, a panel of three judges from the U.S. Court of International Trade unanimously declared Trump’s executive orders on broad import tariffs illegal.
The court found that the International Emergency Economic Powers Act (IEEPA), which Trump cited as the legal basis for the tariffs, does not grant the president such powers. Under the U.S. Constitution, only Congress has the authority to impose tariffs.
“The orders on general and reciprocal tariffs exceed any power granted to the president… to regulate imports via tariffs,” the ruling stated.
The court ruled that Trump’s orders “are declared invalid as contrary to law.”
The case specifically concerns Trump’s 25% tariffs on goods from Canada and Mexico, 20% tariffs on Chinese imports, and a 10% tariff on imports from all U.S. trading partners, which had been justified by the administration as necessary to reduce the trade deficit.
The court also nullified planned “reciprocal” tariffs ranging from 20% to 50% on goods from 60 countries, which were set to take effect on July 9 unless those governments reached a deal with the White House.
“We filed this case because the Constitution does not give any president unchecked authority to undermine the economy. This decision reaffirms that our laws matter and that trade decisions cannot be made on a president’s whim,” said Oregon Attorney General Dan Rayfield, who, along with 11 other state attorneys general, sued to block Trump’s tariffs.
A White House spokesperson criticized the decision, stating: “President Trump promised to put America first, and the administration remains committed to using every tool of executive power to overcome this crisis and restore American greatness.”
Minutes after the ruling, the Trump administration filed an appeal.
World Affairs Correspondent