A Manhattan federal court has delivered a major legal setback to President Donald Trump’s aggressive trade strategy, ruling that his sweeping tariffs violate constitutional limits on presidential authority. The U.S. Court of International Trade invalidated the administration’s 10% blanket tariff on imports and its 25% duties on Canadian and Mexican goods, stating Trump misused emergency powers under the 1977 International Emergency Economic Powers Act (IEEPA).
The ruling, which gives the administration 10 days to comply, leaves in place more targeted tariffs, such as those on steel and aluminum, but dismantles broader levies that had strained trade relations with countries including Canada and Mexico.
Legal experts say this is one of the most significant trade rulings in decades. The court reaffirmed that only Congress can regulate international commerce unless a legitimate emergency allows temporary presidential action. The judges concluded that Trump’s use of a fentanyl emergency to justify tariffs was legally flawed and a gross overreach.
The White House pledged to fight the decision, preparing for an immediate appeal and exploring alternative legal avenues, including tools from a 1974 trade law that allow temporary tariffs under different conditions.
The decision could upend ongoing trade talks and lead to a surge in cross-border imports, particularly with Canada and Mexico, as businesses move quickly to take advantage of the tariff freeze.
The ruling was a response to lawsuits from 13 U.S. states and several businesses that argued Trump’s tariffs were devastating to American commerce. The court’s decision also poses new challenges for Trump’s international negotiations, with analysts suggesting countries may now feel emboldened to resist U.S. trade pressure.
Swifteradio.com
