The U.S. Court of International Trade has struck down a series of sweeping tariffs imposed by former President Donald Trump, declaring that he exceeded his executive authority under the International Emergency Economic Powers Act (IEEPA).
The ruling invalidates key tariffs on imports from Canada, Mexico, and China, which were justified by Trump as responses to trade deficits and border security concerns. The court ruled these justifications did not amount to a “sudden emergency,” and emphasized that tariff power constitutionally rests with Congress.
However, the court clarified that other Trump-era tariffs implemented under different laws, such as Section 301 of the Trade Act and Section 232 of the Trade Expansion Act, remain unaffected.
The Biden administration has announced it will appeal the decision. Meanwhile, Wall Street welcomed the ruling, with stock futures surging amid optimism over eased trade tensions.
The judgment marks a significant reaffirmation of constitutional checks on presidential power in trade matters and reinforces the role of legislative oversight in shaping U.S. economic policy.
