U.S. federal court impedes Trump's implementation of broad 'Liberation Day' tariffs
A federal court in the United States has dealt a significant blow to President Donald Trump's global trade plan, ruling that the President does not have the authority to impose sweeping tariffs under the International Economic Emergency Powers Act (IEEPA) of 1977.
The decision, handed down by a three-judge panel at the U.S. Court of International Trade in New York, states that any interpretation of IEEPA that grants the President unlimited tariff authority is unconstitutional. Consequently, tariffs imposed on Canada, Mexico, and numerous other countries will be vacated, marking a nationwide injunction against any further imposition of these duties.
The IEEPA, usually referred to by the acronym IEEPA, is a national security statute that gives the President authority to control economic transactions following the declaration of an emergency. However, the court ruling emphasizes that this Act does not explicitly authorize the imposition of tariffs.
The Trump administration is expected to appeal the decision, with White House spokesman Kush Desai stating that it is not for unelected judges to decide how to address a national emergency. Desai reiterated President Trump's commitment to using all executive power to address the crisis and restore American Greatness.
Global markets have been volatile, and supply chains have been disrupted due to Trump's unprecedented use of IEEPA to implement tariffs. Prior to Trump's return to the White House, the Act had never been used by a President to impose tariffs.
The ruling combined two cases that challenged Trump's tariffs; one involving five American small businesses contesting the worldwide tariffs, and the other stemming from 12 states arguing against both the "Liberation Day" duties and the fentanyl-related tariffs. At least seven lawsuits are now challenging the tariffs.
Legal experts have hailed the decision as a significant victory, with George Mason University law professor Ilya Somin stating that it is a giant power grab by the President, and the court was very clear that he cannot claim this kind of unlimited tariff authority. Somin, who represents the small businesses challenging the tariffs, argues that IEEPA does not explicitly mention tariffs or their synonyms, such as duties, and therefore, Trump's use of the Act is a misappropriation of the statute.
The White House is likely to request an appellate court to lift the injunction halting the tariffs, and a legal submission from Canada would be welcomed in this regard, according to Somin. It is important to note that tariffs on steel, aluminum, and automobiles remain in place as Trump employed different powers under the Trade Expansion Act of 1962 to enact those duties.
This report by The Canadian Press was first published May 28, 2025.
Kelly Geraldine Malone, The Canadian Press
- The court's decision, concerning President Trump's global trade plan, declares any interpretation of the International Economic Emergency Powers Act (IEEPA) that grants the President unlimited tariff authority as unconstitutional.
- The decision vacates tariffs imposed on Canada, Mexico, and numerous other countries, marking a nationwide injunction against any further imposition of these duties.
- Legal experts, such as George Mason University law professor Ilya Somin, have praised the decision, categorizing it as a significant victory, and arguing that Trump's use of IEEPA to impose tariffs is a misappropriation of the statute, as IEEPA does not explicitly mention tariffs or their synonyms.
- Global markets have been volatile, and supply chains have been disrupted due to trade policy-and-legislation related to war-and-conflicts, crime-and-justice, politics, general-news, and economics, including Trump's unprecedented use of IEEPA to implement tariffs.
