U.S. Court of International Trade Blocks Tariffs

Court Blocks Trump's Global Tariffs – What It Means Now

A U.S. federal court has halted former President Donald Trump’s sweeping global tariffs, delivering a major blow to one of his hallmark economic policies. The Court of International Trade ruled that Trump overstepped his authority by using emergency powers to impose broad tariffs, saying only Congress has the constitutional power to regulate international trade.

The case, brought by small businesses and a coalition of U.S. states, challenged the tariffs under the 1977 IEEPA law. A three-judge panel agreed the law didn’t give Trump the power to tax nearly every trading partner unilaterally. The court also blocked additional tariffs on China, Mexico, and Canada that were tied to immigration and drug trafficking concerns.

The Trump administration quickly vowed to appeal. For now, the tariffs technically remain in place, though most have been suspended.

Market Reaction & Next Steps
Markets breathed a sigh of relief. U.S. futures rose, and Asian stocks gained after the ruling, with the U.S. dollar strengthening. Analysts say this ruling may signal a limit to executive power in trade policy, restoring some stability to markets rattled by years of tariff battles.

If higher courts uphold the ruling, businesses that paid the tariffs should get refunds—with interest. But the appeals process may take months, and some believe a higher court could side with Trump.

What This Means for the UK and Others
The ruling raises questions about the fate of new trade deals, including a UK-US tariff agreement struck earlier this month. While key parts—like reduced tariffs on UK steel and cars—remain unaffected, the broader 10% tariff on UK goods is now uncertain.

The UK government hasn’t commented, but says it’s working to implement the deal as soon as possible.

Bottom Line
This court decision could reshape how U.S. trade policy is made—putting Congress back in the driver’s seat and curbing presidential overreach. But with appeals ahead, the tariff fight isn’t over yet.