A U.S. federal court ruled on Wednesday that President Donald Trump overstepped his executive powers with the imposition of reciprocal tariffs, striking at a central pillar of his economic policy agenda.
In their decision, the judges determined that the 1977 International Emergency Economic Powers Act (IEEPA)—the statute cited by Trump as legal grounds for his tariffs—does not authorize the president to impose such broad import duties, as enacted last month.
The panel stated that the scope and retaliatory nature of the tariff orders surpass the authority Congress delegated to the President under IEEPA to regulate imports through tariffs. The court further noted that the so-called Trafficking Tariffs do not address the specific threats the presidential orders cited as justification, which undermines their legal basis.
The case originated from a lawsuit representing five American firms that depend partially on imported goods. However, the judges clarified that Trump’s tariff directives are unlawful in their entirety, extending the ruling beyond just the affected businesses.
As a result, the court issued a sweeping remedy, ordering that the tariffs in question be vacated and permanently barred from enforcement.
The court wrote:
“ORDERED that Executive Order 14193, Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border, 90 Fed. Reg. 9113 (Feb. 1, 2025); Executive Order 14194, Imposing Duties To Address the Situation at Our Southern Border, 90 Fed. Reg. 9117 (Feb. 1, 2025); Executive Order 14195, Imposing Duties To Address the Synthetic Opioid Supply Chain in the People’s Republic of China, 90 Fed. Reg. 9121 (Feb. 1, 2025); Executive Order 14257, Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits, 90 Fed. Reg. 15041 (Apr. 2, 2025) (collectively, the “Challenged Tariff Orders”); and all modifications and amendments thereto; be, and hereby are, declared to be invalid as contrary to law; it is further
ORDERED that the operation of the Challenged Tariff Orders and all modifications and amendments thereto be, and hereby is, permanently enjoined; it is further”
Still , the White House legal team has the option to appeal the order.
