Introduction: Court Halts Trump’s Broad Import Tariffs
In a landmark ruling on May 28, 2025, the Manhattan-based US Court of International Trade blocked President Donald Trump’s sweeping import tariffs—dubbed the “Liberation Day” tariffs—citing that the President overstepped his constitutional authority. The court rejected the Trump administration’s argument that broad tariff powers under the International Emergency Economic Powers Act (IEEPA) justified the duties imposed on major US trading partners.
The Trump Administration’s Controversial Tariff Policy
Announced on April 2, 2025, the tariffs targeted countries with which the US runs large trade deficits, including China and the European Union, with a baseline rate of 10% and higher rates for some. These tariffs were designed to protect US manufacturing and leverage trade negotiations but shocked financial markets and faced immediate legal challenges.
Trump’s team argued in court that the tariffs were crucial to a delicate trade truce with China and even claimed they contributed to brokering a ceasefire between India and Pakistan in May, following a terror attack in Jammu and Kashmir’s Pahalgam region on April 22. However, the court dismissed these claims as unsubstantiated.
What the Court Said: Congress Holds Exclusive Trade Authority
The three-judge panel ruled that the US Constitution grants Congress—not the President—exclusive authority to regulate international commerce. The IEEPA allows the President to impose economic sanctions during national emergencies, but the court found that the tariffs did not meet this threshold.
“An unlimited delegation of tariff authority would constitute an improper abdication of legislative power,” the court stated. It declared any interpretation of IEEPA that grants the President unbounded tariff-setting powers to be unconstitutional.
Legal Challenges and Next Steps
The ruling came as part of two lawsuits: one by the Liberty Justice Centre on behalf of five small US businesses harmed by the tariffs, and another by 13 US states. Multiple other legal challenges remain pending, underscoring the contentious nature of the tariff policy.
The Trump administration has filed a notice of appeal following the ruling. Meanwhile, White House Deputy Chief of Staff Stephen Miller condemned the decision on social media, calling it a “judicial coup.”
Context: Trade Tensions and the India-Pakistan Conflict
The court’s rejection of the administration’s claim linking the tariffs to an India-Pakistan ceasefire highlights the complex geopolitics surrounding the region. Tensions between the nuclear-armed neighbours flared after a terror attack in April 2025, and though trade negotiations continue globally, courts have limited the scope of executive tariff actions.
For more on trade policy and regional conflicts, see our articles on How US Tariffs Impact Global Trade and Background on India-Pakistan Conflict and Ceasefires.
