# US Trade Court Blocks Trump’s Sweeping Tariffs Under Emergency Powers Law
*Event date: May 28, 2025*
By IO Digest Desk
A federal trade court dealt a major blow to President Donald Trump’s economic agenda on May 28, 2025, ruling that he cannot use emergency powers under the International Emergency Economic Powers Act, or IEEPA, to impose sweeping tariffs on imports. The decision came from a three-judge panel of the New York-based US Court of International Trade, which found that the president’s worldwide and retaliatory tariff orders exceeded the authority granted by the 1977 law.
The ruling immediately cast doubt on one of the central policy tools of Trump’s second term. His administration had used broad tariff threats and tariff announcements both as a revenue argument and as leverage in negotiations with trading partners. According to the Associated Press, the court’s decision put those import taxes into question and raised uncertainty over whether the White House would pause the affected tariffs while the case continues through appeal.
At the center of the dispute was Trump’s claim that longstanding US trade deficits amounted to a national emergency that justified unilateral action. Plaintiffs in multiple lawsuits argued that tariffs ordinarily require congressional approval and that IEEPA does not authorize a president to regulate imports through broad tariff measures. The court agreed with that reading, rejecting the legal foundation for some of the administration’s most expansive trade actions.
The administration moved quickly to challenge the decision. AP reported that the White House filed a notice of appeal soon after the ruling, making it likely that the case would continue to higher courts and possibly reach the US Supreme Court. White House spokesperson Kush Desai defended the administration’s position, arguing that trade deficits have harmed communities, workers and the defense industrial base, even if the court did not accept that rationale as grounds for the disputed tariffs.
The judgment does not wipe out every tariff Trump has imposed. The court left in place tariffs enacted under Section 232 of the Trade Expansion Act of 1962, including a 25% duty on most imported autos and auto parts as well as tariffs on foreign-made steel and aluminum. Those measures depend on national security findings by the Commerce Department and rest on a separate legal authority. AP also noted that Section 122 of the Trade Act of 1974 may still allow a president to impose temporary import taxes of up to 15% for 150 days on countries with substantial trade deficits.
The case carries broad political and economic implications because Trump’s so-called Liberation Day tariffs had shaken financial markets, strained ties with trade partners and fueled concern about inflation and supply chains. Opponents argued that the policy made US trade decisions overly dependent on presidential discretion. Supporters said it gave the administration bargaining power to pursue more favorable deals and encourage manufacturing at home.
The case was heard by Judges Timothy Reif, Jane Restani and Gary Katzmann, underscoring the institutional weight behind the ruling. It was one of at least seven lawsuits challenging the tariffs. AP said one case was brought by small businesses, including wine importer V.O.S. Selections, while another came from a coalition of states led by Oregon.
For now, the ruling stands as a clear statement that emergency powers do not give the executive branch unlimited control over tariff policy. Even if the final legal answer comes later, the decision marked a sharp reminder that in the United States, trade law remains shaped not only by the White House, but also by Congress and the courts.
