In a significant legal ruling on May 28, 2025, the U.S. Court of International Trade overturned former President Donald Trump’s controversial “Liberation Day” tariffs, declaring them unconstitutional. The court found that Trump had exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) to impose sweeping import duties, a statute primarily designed for sanctions, not for regulating trade. This landmark decision orders the U.S. administration to revoke the tariffs within the next 10 days.
The tariffs, announced in April 2025, imposed a 10% duty on all imports and higher rates on goods from 57 countries, including major trading partners like China, Canada, and Mexico. Trump had defended these measures as a response to unfair trade practices and national security concerns. However, the court ruled that such broad economic actions fell outside the scope of the IEEPA, highlighting that the power to regulate trade is constitutionally vested in Congress, not the executive branch.
This ruling has significant implications for U.S. trade policy and the balance of powers between the branches of government. It reinforces the constitutional limits on executive authority and may influence how future administrations approach trade negotiations and tariff impositions. While the White House has signalled its intention to appeal the decision, the case may ultimately reach the Supreme Court, potentially setting a major precedent for executive powers in trade matters.
The ruling marks a pivotal moment in the ongoing debate over the limits of presidential power, particularly in the realm of trade and economic policy. As the case progresses, it will be crucial to monitor its effects on U.S. businesses and international trade relations, as well as the broader implications for constitutional law.
