U.S. Court Strikes Down Trump's Tariffs: "President Exceeded His Authority"

A U.S. federal trade court has struck down former President Donald Trump's broad tariffs on imports, ruling that he overstepped his presidential authority. The court ruled that Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose the tariffs was unlawful.

A three-judge panel in New York heard Trump's April 2-signed proclamation, nicknamed "Liberation Day," which slapped tariffs on a wide range of imports from multiple countries. The court said the IEEPA does not grant the president unlimited authority to impose tariffs and stated that Congress has that power to make such decisions.

The decision said Trump's justification—chronic trade deficits and dependence on foreign production—did not qualify as a valid "unusual and extraordinary threat" under the IEEPA. It was therefore unconstitutional to impose tariffs based on that justification.

The decision has the potential to significantly disrupt Trump's trade policies, particularly those against China, Canada, and Mexico. The cancellation of these tariffs can also affect ongoing trade negotiations and agreements.

The Trump administration indicated it would appeal the decision. Still, the ruling establishes an important legal precedent on the limits of presidential power over economic policy.

Markets cheered the news. U.S. stock futures rose, and a wave of optimism washed over global markets, especially in Europe where stock indexes also rose.

This decision is considered a landmark ruling that fortifies the constitutional boundaries between presidential authority and congressional participation in trade policy.