US court strikes down Trump’s tariffs

A US trade court has ruled that former President Trump's global tariffs violated the law, dealing a major blow to his trade strategy.

In a landmark decision, the US Court of International Trade has ruled that Donald Trump acted beyond his authority when he introduced sweeping global tariffs, declaring his executive orders “contrary to law.” The court found that the president misused the International Emergency Economic Powers Act, which does not permit the imposition of tariffs purely for trade imbalances or wage concerns.

This decision directly impacts Trump's April 2 tariff policy, which included a 10% baseline duty and “reciprocal” tariffs targeting multiple countries. However, it doesn’t cover previously established sector-specific tariffs, such as those on steel or autos. The ruling follows lawsuits from small businesses and a coalition of 12 US states, which argued that the tariffs harmed public services and disrupted supply chains.

Market reaction was immediate and positive, with US stock futures rising 1.5% and Asian markets climbing as investors welcomed the legal pushback against escalating trade tensions. Despite criticism from the White House and its intent to appeal, the judgment strengthens opposition from lawmakers and businesses alike, questioning the limits of presidential power in trade matters.

Now facing legal resistance, Trump's administration has already softened some tariffs and is pursuing talks with global trade partners, including a temporary tariff truce with the EU and China.