WASHINGTON (dpa-AFX) - A U.S. federal court has blocked a bulk of sweeping global tariffs announced by President Donald Trump, ruling that he overstepped his authority to impose them by using emergency economic powers.
The US Court of International Trade ruled that an emergency law invoked by the White House does not give the president unilateral authority to impose tariffs across the world, while noting that under the Constitution, Congress holds exclusive powers to regulate international commerce.
'The court does not pass upon the wisdom or likely effectiveness of the President's use of tariffs as leverage. That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it,' the court said in the decision to issue a permanent injunction.
The court also stayed the enforcement of tariffs announced earlier this year against China, Mexico and Canada, alleging that those countries are not effectively combating fentanyl smuggling and flow of illegal immigrants into the United States.
A three-judge panel at the Manhattan-based court also issued an order preventing the 'Liberation Day' tariffs that Trump announced on April 2, a 20 percent levy on all European Union goods.
In a dramatic move last week, Trump had vowed to raise the tariff on the 27-nation bloc by 50 percent, but later suspended it until July 9 based on a phone call with European Commission President Ursula von der Leyen.
Steel and aluminium tariffs are excluded from the injunction, as they fall under a different law.
The White House has been given 10 days to complete the bureaucratic process of suspending the implementation of the sweeping tariffs.
The Trump administration immediately appealed the ruling, leaving the situation complex for businesses exporting to the U.S.
It filed a notice of appeal, questioning the authority of the court.
The White House reacted to the court order, saying, 'It is not for unelected judges to decide how to properly address a national emergency'.
Dollar and global stocks rallied in response to the development.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
