US court blocks Trump’s ‘Liberation Day’ tariffs, declares Presidential overreach

Court rejects Trump admin’s use of emergency powers for tariffs

A US federal trade court has ruled against the Trump administration’s controversial ‘Liberation Day‘ tariffs, halting their implementation and declaring that the President exceeded his legal authority. The decision, delivered by the Court of International Trade in Manhattan, asserts that President Donald Trump cannot unilaterally impose sweeping tariffs under the International Emergency Economic Powers Act (IEEPA).

Court rules Presidential tariff power has limits

The three-judge panel concluded that Congress did not intend for IEEPA to grant “unbounded” power to impose tariffs. While the law does allow economic sanctions during national emergencies, the court emphasized that such powers must be specifically targeted to address “unusual and extraordinary threats.”

“An unlimited delegation of tariff authority would constitute an improper abdication of legislative power,” the court wrote in its unsigned opinion.

“That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it.”

The judges reaffirmed that the US Constitution grants Congress exclusive power to regulate international commerce, which cannot be overridden by emergency powers.

Trump’s tariff justifications rejected

President Trump had argued that trade deficits and threats from Mexican drug cartels qualified as national emergencies, justifying his broad use of tariffs. The administration had announced sweeping duties on April 2, starting with a 10% baseline on major trading partners, with steeper rates for countries like China and the EU with which the US has significant trade deficits.

Some of these tariffs were paused after their announcement caused volatility in US financial markets. A temporary reduction on the steepest tariffs against China followed in May, as negotiations resumed between the two nations.

Linking tariffs to foreign policy

The Trump administration also claimed that the tariffs were instrumental in de-escalating the India-Pakistan conflict. Officials told the court that Trump’s tariff power had helped broker a ceasefire after a terrorist attack in Jammu and Kashmir’s Pahalgam region on April 22. They argued that disrupting tariff authority could endanger the fragile diplomatic environment, particularly with a July 7 deadline for concluding trade negotiations.

Legal and political fallout

The court’s ruling arose from two lawsuits—one filed by the Liberty Justice Center on behalf of five small businesses affected by the tariffs, and the other by 13 US states. Plaintiffs claimed that the duties would damage their businesses and disrupt supply chains. At least five additional lawsuits challenging the tariffs remain pending in other courts.

The Trump administration quickly filed a notice of appeal following the court’s decision.

White House reaction and public criticism

The White House has not officially responded to the court’s ruling. However, White House Deputy Chief of Staff Stephen Miller denounced the decision on social media, calling it a “judicial coup.”

For all the latest updates, download PGurus App.

The post US court blocks Trump’s ‘Liberation Day’ tariffs, declares Presidential overreach appeared first on PGurus.