Court Blocks Trump's Sweeping Tariffs Citing Overreach

A U.S. trade court delivered a landmark ruling on Wednesday, preventing President Donald Trump's extensive tariffs from going into effect. The court declared that the president had exceeded his authority by imposing broad duties on imports from countries with significant trade surpluses with the United States, a power constitutionally reserved for Congress.

The Court of International Trade stated that federal law does not permit the president's use of tariffs as leverage, asserting that while the effectiveness of such measures is not the issue, the legal boundaries were overstepped. The Trump administration swiftly filed an appeal, challenging the court's authority, signaling the potential for this case to reach the Supreme Court.

The ruling sent ripples through financial markets, causing the U.S. dollar to surge against major currencies and boosting equities in Asia. Trump's tariff strategy, seen as pivotal to his trade war, faces significant legal challenges, potentially altering U.S. trade policy and impacting American businesses managing supply chains amid market volatility.

(With inputs from agencies.)