What Just Happened?
Federal court (Court of International Trade) decided President Trump went beyond his powers by applying the 1977 International Emergency Economic Powers Act (IEEPA) to impose broad tariffs. The court ruled that only Congress has the constitutional authority to control foreign commerce; IEEPA does not permit wide imports tariffs.
Who Brought the Case?
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Liberty Justice Center – Representing small businesses harmed by the tariffs
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Thirteen U.S. states, including New York and Oregon – Challenged the legality of the tariffs
These were the first legal challenges to Trump’s April 2025 “Liberation Day” tariffs.
What Happens Next?
- The White House has appealed the ruling.
The case will now move to the Court of Appeals and could go all the way to the U.S. Supreme Court. - Tariffs remain in place for now.
Despite the ruling, tariffs are still being collected at the border until the appeals process is complete. - If Trump loses the appeal:
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Customs and Border Protection will be ordered to stop collecting the blocked tariffs.
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Businesses that paid these tariffs will receive refunds with interest.
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Tariffs imposed under other laws (like Section 232 on steel and aluminum) are not affected.
Market and Political Reaction
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Markets rose following the decision, with U.S. futures and Asian stocks rebounding.
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The White House criticized the ruling, calling it judicial overreach.
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State officials and business groups praised the decision as a defense of the Constitution and economic fairness.
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Analysts say the decision weakens Trump’s leverage in ongoing and future trade negotiations.
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