In a surprise move, a U.S. court has blocked the tariffs regime announced and changed by President Donald Trump. While the White House has kept announcing new trade measures, applied to specific goods and countries, the policy has been called into question by the actions of the court.
A wide-ranging ruling on Wednesday, May 29th, found that the President had exceeded his authority by imposing duties on U.S. trading partners, since regulating international trade is a role that should properly fall to the U.S. Congress.
A sample of private companies combined with U.S. states, shaping two parts of the judgment. While the firms claimed that the tariffs are economically injurious, the states claim “direct financial harm” due to additional import costs under the Trump administration. Working with these claims, the court claims that Trump exceeded his authority by declaring various national emergencies in support of imposing tariffs, under the International Emergency Economic Powers Act (IEEPA).
While tariffs on motor vehicles, steel, and aluminum will stay in place, the decision saw currency and global stock markets rally. The Trump administration has now filed notice of its intention to appeal. It will likely point to the disparity between its own democratic legitimacy (popular vote and electoral college in 2024) and the court’s own lack of popular support.
