US court slams brakes on Donald Trump's tariffs, declares emergency powers were misused
The panel reaffirmed that only Congress has the constitutional power to regulate trade with foreign nations — a sharp slap at Trump’s claim that the trade deficit amounts to a national emergency.
- May 29, 2025,
- Updated May 29, 2025 7:14 AM IST
A federal court in Manhattan has torpedoed President Trump’s sweeping tariff plan, ruling it unconstitutional and slamming the brakes on his bid to unilaterally reshape U.S. trade policy under emergency powers.
In a stinging rebuke delivered Wednesday, a three-judge panel at the Court of International Trade struck down Trump’s April executive orders that imposed a 10% tariff on most imports and harsher duties on trade-surplus nations like China and the EU. The court declared that the president had overstepped by invoking the International Emergency Economic Powers Act (IEEPA) to justify the move.
“An unlimited delegation of tariff authority would constitute an improper abdication of legislative power,” the judges wrote.
The panel reaffirmed that only Congress has the constitutional power to regulate trade with foreign nations — a sharp slap at Trump’s claim that the trade deficit amounts to a national emergency.
Filed in response to lawsuits by 13 states led by Oregon and five small businesses, the ruling found no legal basis for Trump’s “Worldwide and Retaliatory Tariff Orders.” Plaintiffs included a New York wine importer and a Virginia education kit maker who said the tariffs threatened their survival.
Oregon Attorney General Dan Rayfield called the decision “a win for the rule of law.” Jeffrey Schwab, lawyer for the business plaintiffs, labeled Trump’s actions “an unprecedented and unlawful expansion of executive authority.”
The Trump administration fired back, filing an immediate appeal and accusing the judiciary of overreach. “It is not for unelected judges to decide how to properly address a national emergency,” a White House spokesperson said.
Stephen Miller, then White House deputy chief of staff, took to social media to rail against what he called a “judicial coup.”
Trump’s novel use of IEEPA rattled markets and drew global backlash. Though the administration paused some levies following high-level calls, critics argue the chaos underscores why the Constitution puts checks on presidential power — especially when tariffs threaten to tip the economy.
A federal court in Manhattan has torpedoed President Trump’s sweeping tariff plan, ruling it unconstitutional and slamming the brakes on his bid to unilaterally reshape U.S. trade policy under emergency powers.
In a stinging rebuke delivered Wednesday, a three-judge panel at the Court of International Trade struck down Trump’s April executive orders that imposed a 10% tariff on most imports and harsher duties on trade-surplus nations like China and the EU. The court declared that the president had overstepped by invoking the International Emergency Economic Powers Act (IEEPA) to justify the move.
“An unlimited delegation of tariff authority would constitute an improper abdication of legislative power,” the judges wrote.
The panel reaffirmed that only Congress has the constitutional power to regulate trade with foreign nations — a sharp slap at Trump’s claim that the trade deficit amounts to a national emergency.
Filed in response to lawsuits by 13 states led by Oregon and five small businesses, the ruling found no legal basis for Trump’s “Worldwide and Retaliatory Tariff Orders.” Plaintiffs included a New York wine importer and a Virginia education kit maker who said the tariffs threatened their survival.
Oregon Attorney General Dan Rayfield called the decision “a win for the rule of law.” Jeffrey Schwab, lawyer for the business plaintiffs, labeled Trump’s actions “an unprecedented and unlawful expansion of executive authority.”
The Trump administration fired back, filing an immediate appeal and accusing the judiciary of overreach. “It is not for unelected judges to decide how to properly address a national emergency,” a White House spokesperson said.
Stephen Miller, then White House deputy chief of staff, took to social media to rail against what he called a “judicial coup.”
Trump’s novel use of IEEPA rattled markets and drew global backlash. Though the administration paused some levies following high-level calls, critics argue the chaos underscores why the Constitution puts checks on presidential power — especially when tariffs threaten to tip the economy.