In a significant legal setback to former President Donald Trump’s trade agenda, a U.S. federal court has ruled against the wide-ranging tariffs he imposed, stating that he acted beyond the scope of his legal authority.
A panel of three judges determined that Trump misused emergency powers to justify tariffs on imports from nearly every nation, concluding that the law did not grant him such sweeping control.
The court's decision also puts a stop to specific trade levies previously placed on China, Mexico, and Canada.
Shortly after the ruling, the Trump administration filed an appeal, asserting that the judiciary should not dictate how the executive branch responds to perceived national threats.
“It is not for unelected judges to decide how to properly address a national emergency,” an administration spokesperson said.
For now, the practical impact remains limited. According to a former senior customs official, no immediate changes will occur at the U.S. border while the legal process continues.
The challenge to the tariffs came from a group of five small businesses—including a wine distributor and a bike shop—that rely on imported products and argued the duties harmed their operations.
