A U.S. federal court has blocked most of Donald Trump’s tariffs, ruling he exceeded his powers under the International Emergency Economic Powers Act (IEEPA). The Court of International Trade stated the law does not allow unlimited presidential authority to impose tariffs, even during a national emergency.
The decision halts duties targeting nations like China, Canada, and Mexico, dealing a blow to Trump’s broader trade war strategy. The White House has appealed, calling the ruling a “judicial overreach.” Trump had argued the tariffs were necessary to fix trade deficits and combat drug inflows.
Global markets, including Asia and Europe, rallied after the ruling. Critics, including Rep. Gregory Meeks, labeled the tariffs an “illegal abuse of executive power.” The Justice Department defended Trump’s strategy, but analysts warn the tariffs may raise inflation and strain U.S. consumers.