A federal court has permanently overturned emergency tariffs imposed by former President Donald Trump, ruling that his use of unilateral tariff measures exceeded the authority granted by Congress. The US Court of International Trade determined that Trump had overstepped his legal bounds under the 1977 International Emergency Economic Powers Act (IEEPA), invalidating the tariffs applied to nearly all imports.
The ruling immediately cancels tariffs imposed under IEEPA, including broad levies introduced in April and additional tariffs targeting China. However, the decision does not affect duties imposed under separate trade legislation, such as tariffs on steel, aluminum, and auto parts. The Trump administration has filed an appeal.
The court also dismissed emergency tariffs imposed on Mexico, Canada, and China, which were justified as measures against drug trafficking. Judges ruled that these tariffs were used as leverage rather than direct responses to trade threats, violating statutory requirements.
Trump had frequently adjusted tariffs, using them as a bargaining tool in trade negotiations. Following the ruling, oil futures reacted positively, with Brent and WTI prices increasing. While the legal battle continues, the decision represents a significant setback to Trump’s trade policies and tariff strategies.
