US court blocks Trump from imposing the bulk of his tariffs

A three-judge panel at the US Court of International Trade, a relatively low-profile court in Manhattan, ruled Wednesday to halt Trump’s global tariffs that he imposed citing emergency economic powers, including his “Liberation Day” tariffs imposed on April 2 and tariffs placed earlier against China, Mexico and Canada designed to combat fentanyl coming into the United States.

A federal court on Wednesday ruled that President Donald Trump overstepped his authority to impose sweeping tariffs that have raised the cost of imports for everyone from giant businesses to everyday Americans. A three-judge panel at the US Court of International Trade, a relatively low-profile court in Manhattan, stopped Trump’s global tariffs that he imposed citing emergency economic powers, including the “Liberation Day” tariffs he announced on April 2. It also prevents Trump from enforcing his tariffs placed earlier this year against China, Mexico and Canada, designed to combat fentanyl coming into the United States. The court ruled in favor of a permanent injunction, potentially grinding Trump’s global tariffs to a halt before “deals” with most other trading partners have even been reached. The court ordered a window of 10 calendar days for administrative orders “to effectuate the permanent injunction.” That means the bulk – but not all – of Trump’s tariffs will be put in a standstill. The order halts Trump’s 30% tariffs on China, his 25% tariffs on some goods imported from Mexico and Canada, and the 10% universal tariffs on most goods coming into the United States. It does not, however, affect the 25% tariffs on autos, auto parts, steel or aluminum, which were subject to Section 232 of the Trade Expansion Act – a different law than the one Trump cited for his broader trade actions. Stock futures surged on the ruling. Dow futures rose nearly 500 points, or 1.1%. The broader S&P 500 futures were up 1.4%, and Nasdaq futures were 1.6% higher in afterhours trading. The lawsuit was filed by the libertarian legal advocacy group Liberty Justice Center in April and represented wine-seller VOS Selections and four other small businesses that claimed they had been severely harmed by the tariffs. The panel came to a unanimous decision, publishing an opinion on the VOS suit and also one by twelve Democratic states brought against the Trump tariffs.