In a landmark decision on May 28, 2025, the U.S. Court of International Trade struck down former President Donald Trump’s sweeping “Liberation Day” tariffs, ruling that he exceeded his authority under the International Emergency Economic Powers Act (IEEPA).
The court found that the IEEPA does not grant the president unlimited power to impose tariffs on imports from nearly every country. Specifically, the court invalidated tariffs of 25% on goods from Canada and Mexico, and 20% on Chinese imports, which were justified by the Trump administration as measures to combat fentanyl trafficking.
The ruling emphasized that the IEEPA does not authorize such broad tariff powers and that the president’s actions violated the Constitution’s separation of powers. The court issued a permanent injunction against the enforcement of these tariffs.
The White House has announced plans to appeal the decision, arguing that the president’s actions were necessary to address national emergencies. However, the court’s decision has been seen as a significant check on executive power in trade policy.
Financial markets responded positively to the ruling, with futures for major indices, including the tech-heavy Nasdaq, climbing nearly 2%.
This decision marks a pivotal moment in the ongoing debate over the scope of presidential authority in trade matters and underscores the importance of congressional oversight in such decisions.
