The U.S. Court of International Trade ruled Thursday that the 10% global tariff imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA) violates the law, concluding that the president cannot invoke emergency powers solely on the basis of trade deficits.
The ruling represents another significant legal blow to Trump’s tariff policy. Separately, a federal appeals court is hearing the Pentagon’s attempt to punish Senator Mark Kelly, further highlighting the ongoing legal debate over the boundaries of executive power.
The Trump administration quickly announced it would appeal, with a White House spokesperson saying the decision “severely infringes on the president’s constitutional authority to handle national emergencies.” Legal experts note that even if the tariffs are ruled unlawful, the Supreme Court’s final determination could take months.
Markets reacted positively to the news, with Dow futures ticking higher after the ruling. However, analysts warned that actual removal of tariffs depends on the appellate outcome, and businesses should not immediately adjust supply chain strategies.