The U.S. Court of International Trade on Wednesday struck down former President Donald Trump’s sweeping reciprocal tariffs, ruling they exceeded legal authority granted under the International Emergency Economic Powers Act (IEEPA).
The three-judge panel said Trump’s move to impose global tariffs, ranging from 11% to 84%, lacked a clear connection to the national emergency he declared, particularly regarding claims that the duties would curb international drug trafficking. The court stated the tariffs “fail because they do not deal with the threats set forth in those orders.”
The administration immediately appealed the decision to the U.S. Court of Appeals for the Federal Circuit, with a possible path to the Supreme Court.
Dow futures surged 500 points following the ruling, signaling market relief. Key tariffs on aluminum and steel, enacted under separate authorities, remain unaffected.
The court ordered the administration to halt the tariff collection and barred any future modifications. Trump’s team has ten days to comply.
Oregon Attorney General Dan Rayfield, a lead plaintiff, called the decision “a win for American families and small businesses.”
The White House defended the tariffs as necessary for economic security. A spokesperson criticized the ruling, stating, “It is not for unelected judges to decide how to address a national emergency.”
The legal battle continues.
