Is Trump's trade policy in turmoil? What happens to his tariffs now that the court has struck them down?

The US Court of International Trade's decision to block the tariffs that US president Donald Trump imposed under the International Emergency Economic Powers Act (IEEPA) on imports from almost every country in the world “throws the president’s trade policy into turmoil,” according to a former US trade official, as per a report.

Uncertainty for Trade and Supply Chains

An ex-US trade official who is now vice president at the Asia Society, Wendy Cutler said, “Partners negotiating hard during the 90-day tariff pause period may be tempted to hold off making further concessions to the U.S. until there is more legal clarity,” quoted AP.

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According to the report, even companies would have to reassess the way they operate their supply chains, perhaps "speeding up shipments to the United States to offset the risk that the tariffs will be reinstated on appeal," wrote AP.

Court Rules Against Donald Trump’s Emergency Tariffs

A federal court with a three-judge panel gave the verdict that the US president overstepped his authority as he invoked the 1977 International Emergency Economic Powers Act to declare a national emergency and justify his high tariffs, reported AP.

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Trump's tariffs have been challenged in at least seven lawsuits, and in the recent ruling, the trade court combined two of the cases, one brought by five small businesses and another by 12 US states, as reported by AP.

A professor of trade policy at Cornell University, Eswar Prasad, highlighted that "For now, the trade court’s ruling destroys the Trump administration’s rationale for using federal emergency powers to impose tariffs, which oversteps congressional authority and contravenes any notion of due process,” quoted AP. Prasad also mentioned, “The ruling makes it clear that the broad tariffs imposed unilaterally by Trump represent an overreach of executive power," as quoted in the report.

FAQs

What does this mean for presidential powers?
The ruling limits how far a president can go in using emergency powers to reshape trade policy without Congress.

Are all of Trump’s tariffs now blocked?
No. The ruling affects broad-based tariffs imposed under IEEPA, but steel, aluminum, and auto tariffs based on national security reviews remain intact.