A federal court in New York has ruled against former President Donald Trump’s “Liberation Day” tariffs, suggesting that he overstepped his authority by bypassing Congress, which holds exclusive power over international trade.
The Court of International Trade found that the emergency statute Trump invoked did not justify the sweeping tariffs, which were announced on April 2 and ranged from 10% to 54% depending on the country.
Although most of the tariffs are currently suspended at a base 10% for 90 days, the court ordered the administration to begin lifting them within 10 days.
The ruling also invalidated a separate set of tariffs on China, Mexico, and Canada implemented during Trump’s second term. However, it did not affect product-specific tariffs on cars, steel, and aluminum, which were enacted under a different legal authority.
This decision raises uncertainty over US trade policy and could impact newly signed deals, including the US-UK agreement.
Trump’s legal team immediately filed an appeal, and will be hoping for a more favourable outcome from higher courts.
In the meantime, the tariffs will remain in place during the appeal process. If the ruling is upheld, affected businesses could receive refunds—with interest—on previously paid tariffs, including those at the 10% general rate and up to 145% on Chinese imports.
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