• A federal court blocked Trump’s tariffs, ruling he overstepped his authority under the International Emergency Economic Powers Act (IEEPA), effectively leading to the court blocking Trump’s plan.
• The ruling stops broad tariffs on almost all U.S. trade partners but leaves some tariffs on steel, aluminum, and autos in place as part of the court’s blocks on Trump’s plan.
• Experts say the decision limits presidential power over tariffs and forces the administration to follow stricter legal rules, indicating how the court blocks Trump’s plan.

A federal court in New York dealt a major blow to President Donald Trump on Wednesday. The court blocked Trump’s plan and stopped his bold initiative to place heavy taxes on imports from almost every country. Trump had used the 1977 International Emergency Economic Powers Act (IEEPA) to declare a national emergency. He said the U.S. trade deficit threatened national security. But the court found that he exceeded his authority. This ruling prevents Trump from using emergency powers to impose tariffs so broadly. The tariffs would have changed decades of U.S. trade policy and disturbed global markets.

Trump Used Emergency Powers to Impose Tariffs on Nearly All Trade Partners

On April 2, Trump set new tariffs on many countries. He placed so-called reciprocal tariffs up to 50% on nations with trade deficits with the U.S. He also set a 10% baseline tariff on nearly all other trading partners. After criticism, Trump paused the reciprocal tariffs for 90 days to allow negotiations. But he kept the baseline tariffs active. Trump claimed the trade deficit created a national emergency. Using IEEPA, he acted without Congress’s approval. Earlier, in February, he also used IEEPA to impose tariffs on Canada, Mexico, and China. He said illegal immigration and drug trafficking at the border justified a national emergency and higher tariffs on those countries.

Court Finds Trump Overstepped Constitutional Limits on Tariff Powers

The U.S. Constitution gives Congress the power to set taxes and tariffs. Over many years, presidents gained more influence over tariffs. Trump pushed this trend further than before. The court ruled that Trump went beyond his authority under IEEPA. It also said the tariffs did not solve the problems Trump claimed. The court noted that trade deficits have existed for 49 years. This fact shows the situation does not meet the standard of a sudden emergency. The court combined two lawsuits challenging Trump’s tariffs. One came from five small businesses, the other from 12 states. These lawsuits argued that Trump’s use of emergency powers violates the law and constitution.

Some Trump Tariffs Remain But Are Based on Different Laws

The court did not block tariffs on steel, aluminum, and autos. These tariffs rely on a different law. This law requires the Commerce Department to investigate trade threats. The president cannot impose these tariffs alone. These levies remain in place because they follow proper procedures. The ruling only affects tariffs Trump tried to impose using IEEPA. The administration argued that courts once approved emergency tariffs under President Nixon. Nixon acted during a 1971 financial crisis. He used the 1917 Trading With Enemy Act, a law that predates IEEPA. But the court said Trump’s tariffs go beyond what IEEPA allows.

Experts Warn the Ruling Could Shake Up Trade Talks and Business Plans

Wendy Cutler, a former U.S. trade official, said the ruling creates uncertainty. She explained that countries might delay trade talks during the 90-day tariff pause. These nations might wait for clear legal guidance before making deals. Companies must rethink their supply chains. Some may speed up shipments to avoid new tariffs if courts reinstate them on appeal. As the court blocks Trump’s plan, the ruling disrupts the trade policy the Trump administration tried to enforce. It also leaves businesses unsure about future costs and tariffs.

Trump Retains Limited Tariff Authority Under a Separate Law

The court said Trump still holds some power under the Trade Act of 1974. This law lets the president impose tariffs to correct trade deficits. But it limits tariffs to 15% and only for 150 days. Trump cannot use this law to impose broad tariffs without time limits. The ruling forces the administration to rely on this narrower legal path. Experts say this reduces the president’s tariff powers significantly.

Trade Experts Say the Court Limits Executive Power Over Tariffs

Eswar Prasad, a Cornell University trade professor, said the court’s ruling destroys the Trump administration’s justification for emergency tariffs. He said Trump overstepped congressional authority and broke the rules of due process. The ruling clearly shows the president cannot impose wide tariffs without Congress. Prasad called the tariffs a serious overreach of executive power. The decision sends a strong message about the limits on presidential actions in trade policy.