U.S. Trade Court Blocks Trump's Tariffs: A Deep Dive

The U.S. trade court has issued a landmark ruling, blocking most of President Donald Trump's tariffs, asserting that he overstepped his executive powers. The decision could reshape the future of U.S. trade policy and the tools available to the administration.

The Court of International Trade on Wednesday invalidated all tariffs imposed by Trump since January under the International Emergency Economic Powers Act. This law is intended for extraordinary threats during national emergencies, delegating exclusive trade regulation powers to Congress.

Analysts from Goldman Sachs, Deutsche Bank, and Panmure Liberum suggest that Trump could resort to other laws such as Section 122, 301, or 232 from the Trade Act, allowing for temporary or sector-specific tariffs. Trump might also revisit the rarely used Section 338 from the 1930 Act, potentially triggering new trade disputes.

(With inputs from agencies.)