Three-judge panel rules Trump’s sweeping trade measures were unlawful and exceeded executive authority.
In a major legal blow to President Donald Trump’s trade agenda, the United States Court of International Trade has struck down nearly all of the global tariffs he imposed under the guise of a national emergency. The decision, issued by a three-judge panel, unanimously found that the tariffs violated the limits of presidential authority granted under the 1977 International Emergency Economic Powers Act (IEEPA).
The ruling effectively nullifies tariffs levied against dozens of countries, including key allies such as Canada, Mexico, and members of the European Union, as well as adversaries like China, and, in one noted example, an uninhabited island with no trade activity whatsoever.
The panel—comprising judges appointed by Presidents Ronald Reagan, Barack Obama, and Trump himself—found that the administration’s interpretation of the IEEPA was overly broad and constitutionally suspect.
“The question is whether the International Emergency Economic Powers Act delegates these powers to the president in the form of authority to impose unlimited tariffs on goods from nearly every country in the world,” the court wrote. “The Court does not read the law to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder.”
The court emphasized that the president cannot act unilaterally to impose broad economic measures without clear authorization from Congress.
“The law does not grant tariff authority to the president simply when he ‘finds’ or ‘determines’ that an unusual and extraordinary threat exists,” the panel concluded.
Canadian Prime Minister Mark Carney welcomed the decision as a vindication of Canada’s long-standing opposition to the tariffs.
“The government welcomes yesterday’s decision by the U.S. Court of International Trade, which is consistent with Canada’s long-standing position that the U.S. IEEPA tariffs were unlawful as well as unjustified,” Carney said. “Trade relationships should be based on fairness, not political expediency.”
Canada had been hit by the sweeping tariffs on steel, aluminum, and other goods, which had triggered retaliatory measures and strained U.S.-Canada relations.
Despite the setback, the Trump administration vowed to appeal. Speaking on behalf of President Trump, White House spokesman Kush Desai framed the ruling as judicial overreach.
“It is not for unelected judges to decide how to properly address a national emergency,” Desai said. “President Trump pledged to put America First, and the administration is committed to using every lever of executive power to address this crisis. Unfair foreign trade has created historic and persistent deficits and decimated American communities, workers, and defence manufacturing.”
The Trump administration has long maintained that the United States is under economic attack from unfair trade practices and has invoked emergency powers to implement tariffs as a tool to force renegotiations of trade agreements.
As the administration prepares to appeal, the future of Trump’s global trade agenda and its legal foundation remains uncertain.
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