Court Overturns Trump's Sweeping Tariff Policies, Imposes New Challenge for Trade

A U.S. federal court in Manhattan delivered a significant blow to former President Donald Trump's trade policies, ruling that his sweeping tariffs on various imports exceeded his legal authority. This ruling, as reported by CNN, challenges the tariffs enforced under Trump's use of emergency economic powers, which were deemed unlawful by the U.S. Court of International Trade.

The court's decision halts most of Trump's tariffs, including a 30% duty on Chinese imports and a 25% tariff on certain Mexican and Canadian goods, although it exempts tariffs on autos, steel, and aluminum. This case, brought forward by Liberty Justice Centre on behalf of affected small businesses, marks a notable pushback against the imposition that allegedly caused financial strains on companies like wine importer VOS Selections.

The panel of judges unanimously found that Trump's invocation of the International Emergency Economic Powers Act (IEEPA) as justification for the tariffs was legally unsubstantiated. The IEEPA, according to the ruling, does not explicitly endorse the president's authority to enact tariffs, posing potential constitutional conflicts by encroaching on congressional powers. In response to the ruling, U.S. markets saw a positive uptick, reflecting renewed optimism amidst trade policy uncertainty.

(With inputs from agencies.)