A three-judge panel from the U.S. Court of International Trade ruled that President Donald Trump lacked the authority under the 1977 International Emergency Economic Powers Act (IEEPA) to impose broad global tariffs.
The decision will block several major tariffs, including a 30% tariff on Chinese goods and 25% tariffs on Canada and Mexico tied to border security and trafficking. The court concluded that only Congress can enact such sweeping trade measures and found no legal basis for the retaliatory or trafficking tariffs imposed under IEEPA. The ruling temporarily removes tariffs on the U.S.’s top agricultural export markets: Canada, Mexico, and China.
The Trump administration plans to appeal the decision, which arose from a lawsuit filed by five small businesses with support from the Liberty Justice Center and twelve Democratic-led states.
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