A U.S. federal court has struck down tariffs imposed by former President Donald Trump under the International Emergency Economic Powers Act (IEEPA), ruling that the executive branch overstepped its authority. The Court of International Trade invalidated the tariffs with immediate effect, stating that the 1977 law does not empower the president to unilaterally impose duties as a tool of trade policy.
The three-judge panel unanimously ruled that Congress holds exclusive authority to regulate international commerce, and that the IEEPA cannot be interpreted to override this constitutional mandate. “The use of tariffs as leverage is impermissible not because it is unwise or ineffective, but because federal law does not allow it,” the Court stated in its decision.
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The ruling specifically targets what the court referred to as “Worldwide, Retaliatory, and Trafficking Tariff Orders,” concluding that they either exceeded presidential authority or were unrelated to the threats cited in their justification. While the decision invalidates tariffs under IEEPA, it does not apply to duties enacted via other legal frameworks, including those affecting automobiles, steel, and aluminum.
The Trump administration originally justified the measures on grounds of national sovereignty and economic competitiveness. Products affected by the tariffs included consumer electronics such as the Nintendo Switch 2, Razer Blade laptops, and select Tesla models, though pricing and availability could now shift as those duties are lifted.
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The ruling marks a significant check on presidential power in trade matters. The Trump administration has filed a notice of appeal, challenging the court’s interpretation and defending the scope of executive authority under IEEPA.
Source: The Court of International Trade
