Court Limits Trump’s Tariff Powers Under IEEPA
Today (28 May 2025), the U.S. Court of International Trade made a big decision: it ruled that President Trump went too far when he used emergency powers to impose broad tariffs on imports from around the world.
This is a major development for anyone watching how U.S. trade policy works—or doesn’t—and it puts real limits on what a president can do without Congress.
A Quick Reminder: What’s IEEPA?
In case you missed it, we recently covered the International Emergency Economic Powers Act (IEEPA) in this earlier post. IEEPA was passed in 1977 to give presidents tools to respond to national emergencies involving foreign threats—mostly by freezing assets or blocking trade with specific countries. But it wasn’t meant to be a blank check.
What the Court Said
The Trump administration had used IEEPA to put tariffs on a wide range of goods from countries like China, Canada, and Mexico. The justification? That the U.S. trade deficit was a national emergency.
But the Court wasn’t buying it.
“The ruling from a three-judge panel at the New York-based U.S. Court of International Trade came after several lawsuits arguing Trump’s “Liberation Day” tariffs exceeded his authority and left the country’s trade policy dependent on his whims.”
— AP News
In short, the Court ruled that IEEPA doesn’t let the president slap tariffs on whoever he wants just by declaring a trade emergency. That kind of decision belongs to Congress.
You can also read more from Axios and the Wall Street Journal if you want additional context.
Here’s what this Ruling Means
The tariffs are struck down — Imports affected by Trump’s emergency tariffs are no longer subject to those extra costs.
Trade deals may be shaken up — Negotiations with countries like the UK and China could be impacted since those tariffs are now off the table.
Presidents can’t go it alone — The Court made it clear that major trade decisions need input from Congress, not just a presidential proclamation.
What Happens Now?
The Trump team is likely to appeal, and this could eventually end up at the Supreme Court. But for now, it’s a big win for those who believe in checks and balances.
Update
As of 29 May 2025, this ruling was appealed and there is a temporary stay leaving the tariffs in place. Parties have until June 5th to respond.
“The 1977 International Emergency Economic Powers Act doesn’t say anything at all about tariffs,” Bruce Fain, a former US associate deputy attorney general under Ronald Reagan, told Al Jazeera.
Fein added that there is a statute, the Trade Expansion Act of 1962, which allows tariffs in the event of a national emergency. However, he said, it requires a study by the commerce secretary and can only be imposed on a product-by-product basis.
Why It Matters
This ruling isn’t just about trade. It’s about the limits of executive power. IEEPA was never meant to give any president a free hand to reshape the global economy. This decision reminds us that even emergency powers have boundaries.