Federal Court Blocks Trump’s “Liberation Day” Tariffs

On May 28, a US federal court halted the implementation of President Donald Trump’s “Liberation Day” tariffs, ruling that the president exceeded his constitutional authority by imposing broad import taxes on countries that sell more goods to the United States than they buy.

The US Court of International Trade, based in Manhattan, determined that the Constitution grants Congress sole authority to regulate international commerce, a power that cannot be overridden by the president’s emergency economic powers.

The lawsuit, filed by the nonpartisan Liberty Justice Center on behalf of five small businesses, marked the first major legal challenge to Trump’s new round of tariffs. The companies, ranging from a New York wine and spirits importer to a Virginia-based manufacturer of educational kits and musical instruments, argued that the tariffs would severely hinder their ability to operate.

In response to the ruling, the Trump administration filed an appeal and questioned the court's jurisdiction. The Court of International Trade’s decisions can be appealed to the US Court of Appeals for the Federal Circuit in Washington, and potentially to the US Supreme Court.

Tariffs have been a cornerstone of Trump’s trade agenda, disrupting global supply chains and financial markets. A White House spokesperson defended the tariffs, stating that the US’s trade deficits represented “a national emergency that has devastated American communities, left workers behind, and weakened our defense industrial base,” points the court did not dispute. “It is not the role of unelected judges to determine how to respond to a national emergency,” says spokesperson Kush Desai in a statement.