Federal trade court has delivered a decisive legal setback to President Donald Trump by halting a major tariff initiative implemented under the International Emergency Economic Powers Act. The Court of International Trade issued a permanent injunction blocking the tariffs, ruling that the administration exceeded its legal authority.
The court determined that the broad use of the IEEPA to justify universal tariffs on foreign goods did not meet the standard of addressing an “unusual and extraordinary” national threat. Judges concluded that federal law does not permit the use of emergency powers to impose sweeping trade restrictions. The panel also emphasized that the Constitution grants Congress—not the president—the sole authority to regulate international trade.
Originating from two consolidated lawsuits, the ruling includes a case filed by the Liberty Justice Center on behalf of five small U.S. importers. The other was brought by a coalition of twelve states, including Oregon, that challenged the economic and constitutional basis of the tariffs.
Affected businesses include a Virginia-based manufacturer of educational kits and a New York importer of wine and spirits. These companies argued that the tariffs damaged their ability to stay competitive and disrupted their operations.
Broad Impact as Court Declares Tariff Orders Unlawful for All
In their decision, the judges noted that the relief granted was not limited to the plaintiffs. Instead, the ruling applies broadly, invalidating the challenged tariff orders for all parties. The court ordered the Trump administration to revise its directives within ten days of the verdict.
Oregon Attorney General Dan Rayfield, who led the states’ case, described the decision as a necessary correction to what he called unlawful and harmful trade policies. He welcomed the court’s move to restore the balance of powers in trade matters.
Shortly after the ruling, the Trump administration filed an appeal and questioned the court’s jurisdiction. Officials indicated their intention to challenge the decision further.
The ruling does not affect other tariffs Trump imposed on steel, aluminum, and automobiles under different legal authorities. Those industry-specific duties remain in place pending separate legal reviews.
With several additional lawsuits still pending in courts nationwide, the legal fight over Trump’s trade agenda continues to evolve.
