Federal court blocks Trump from imposing sweeping tariffs under emergency powers law

Federal court blocks Trump's sweeping tariffs, casting doubt on his signature economic policies and rattling global markets.

A federal court on Wednesday blocked U.S. President Donald Trump from imposing sweeping tariffs on imports under an emergency-powers law, swiftly throwing into doubt Mr. Trump's signature set of economic policies that have rattled global financial markets, frustrated trade partners and raised broader fears about inflation intensifying and the economy slumping.

The ruling from a three-judge panel at the New York-based U.S. Court of International Trade came after several lawsuits arguing Mr. Trump has exceeded his authority and left the country's trade policy dependent on his whims.

Mr. Trump has repeatedly said the tariffs would force manufacturers to bring back factory jobs to the U.S. and generate enough revenue to reduce federal budget deficits.

He used the tariffs as a negotiating cudgel in hopes of forcing other nations to negotiate agreements that favoured the U.S., suggesting he would simply set the rates himself if the terms were unsatisfactory.

White House spokesperson Kush Desai said that trade deficits amount to a national emergency “that has decimated American communities, left our workers behind, and weakened our defence industrial base — facts that the court did not dispute".

The administration, he said, remains “committed to using every lever of executive power to address this crisis and restore American greatness".

But for now, Mr. Trump might not have the threat of import taxes to exact his will on the world economy as he had intended, since doing so would require congressional approval.