A federal judge panel ordered an end to almost all of President Donald Trump’s tariffs.
Three judges ordered an immediate end to Trump’s baseline 10% tariff, any of the Liberation Day retaliatory tariffs, and the tariffs placed against Canadian and Mexican imports blamed on fentanyl trafficking.
When Trump issued these tariffs, he leaned on his authority granted by the International Emergency Economic Powers Act. The judges argued that IEEPA did not allow for such sweeping economic policy.
“IEEPA does not authorize any of the Worldwide, Retaliatory, or Trafficking Tariff Orders,” the judges’ decision said. “The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the president by IEEPA to regulate importation by means of tariffs. The Trafficking Tariffs fail because they do not deal with the threats set forth in those orders.”
See also: Live updates: How Trump tariffs are impacting trucking
The decision came from the U.S. Court of International Trade, before judges Gary Katzmann, Timothy Reif, and Jane Restani. The case came from two suits brought on May 23 by several states and companies against the Department of Homeland Security, where the plaintiffs challenged Trump’s IEEPA powers.
What does this mean for tariffs?
The court’s decision is a significant blow to Trump’s tariff policy: It orders an immediate end to most major import fees introduced this year. That includes:
- The baseline 10% import fee
- The often-delayed “retaliatory” tariffs threatened against major trade partners
- Tariffs targeting Mexico and Canada that relied on fentanyl trafficking as their justification
- The 25% tariff on steel, aluminum, and autos is not affected by this ruling
However, it is not the end of Trump’s Liberation Day tariffs: White House officials have criticized the decision, the administration has already filed a notice of appeal, and the administration has recently ignored court orders.
Beyond IEEPA, Trump also has several other laws that authorize the president to set tariffs, including when:
- There are threats to national security
- A trading partner violates an agreement
- Imports pose a serious threat to a domestic industry
