Trump Tariff Plan Hits Major Legal Wall as US Court Blocks Sweeping Import Taxes

In a stunning legal blow to one of former President Donald Trump’s most aggressive economic strategies, a U.S. trade court has blocked the sweeping global tariffs that had become a hallmark of his trade war. The decision casts serious doubt on the future of Trump’s tariff regime and sets the stage for a prolonged legal and political battle.

The Court of International Trade ruled that Trump overstepped his authority by using the International Emergency Economic Powers Act (IEEPA) to justify broad-based tariffs on nearly every U.S. trading partner. The court emphasized that Congress, not the president, holds the power to regulate foreign trade, dealing a critical blow to Trump’s use of emergency powers for economic policy.

The Trump administration has downplayed the ruling, immediately requesting a stay of the court’s order while it prepares an appeal. White House trade adviser Peter Navarro suggested that alternative legal pathways still exist to impose tariffs, while economic adviser Kevin Hassett assured media that the decision would not derail ongoing trade negotiations.

“This is just a hiccup,” Hassett said. “We’re confident the ruling will be overturned.”

However, the court’s decision has already rattled international trade discussions. Analysts warn that it could undermine the U.S.’s negotiating power, especially during a sensitive 90-day pause on tariff escalations that Trump had introduced to encourage trade deals. The ruling also complicates newly agreed U.S. trade arrangements, including a recent deal with the United Kingdom.

The lawsuit was brought by the Liberty Justice Center on behalf of small businesses, along with a coalition of U.S. states including New York. Attorney General Letitia James hailed the decision, stating: “No president has the power to single-handedly raise taxes. This is a victory for the Constitution.”

Markets responded positively to the news. U.S. and Asian stock markets saw modest gains, with businesses and investors welcoming a potential return to predictable trade policies.

What happens next?
While the blanket tariffs are on hold, targeted tariffs on steel, aluminum, and vehicles remain unaffected, as those were imposed under separate laws related to national security. The Trump administration still has options, including invoking a section of a 1930 trade law that allows tariffs of up to 50% on imports from countries that “discriminate” against the U.S.

Trump can also impose limited emergency tariffs — up to 15% for 150 days — if he proves that the country’s trade balance presents an immediate threat, though such a move could trigger new legal scrutiny.

For now, importers will continue paying tariffs unless the court order is upheld through appeal. If Trump’s legal team fails to overturn the decision, the U.S. Customs and Border Protection agency could eventually issue refunds to affected businesses.

This ruling marks a significant moment in Trump’s second-term agenda, highlighting the limits of executive power and raising questions about the long-term sustainability of his America-first economic doctrine.