
A three-judge panel from the U.S. Court of International Trade has unanimously determined that Congress did not grant the president expansive tariff authority under the International Emergency Economic Powers Act of 1977 (IEEPA), which was a key aspect of Donald Trump’s reasoning . The court emphasized in its unsigned opinion that an unbounded delegation of tariff power would amount to an inappropriate surrender of legislative authority to another branch of government.
The court located in New York affirmed that the United States Constitution bestows upon Congress the exclusive authority to regulate commerce with foreign nations, a power that is not overshadowed by the president’s jurisdiction to protect the economy.
The IEEPA provides the president with the ability to impose necessary economic sanctions during a state of emergency to address an “unusual and extraordinary threat.” The ruling, issued on Wednesday, effectively blocks Trump’s “Liberation Day” tariffs announced on April 2, which mandated a 10 percent tariff on all imports along with higher reciprocal tariffs for various countries. It also nullifies previous tariffs imposed on Canada, Mexico, and China, many of which had already been postponed or modified due to declines in the stock market and rising Treasury yields following Trump’s trade policy changes.
The judges have granted the Trump administration ten days to issue any administrative orders required to implement their ruling. The panel included Judge Timothy Reif, appointed by Trump; Judge Jane Restani, appointed by former President Reagan; and Judge Gary Katzmann, appointed by former President Obama.
Goldman Sachs has cautioned that these tariffs could trigger a recession, highlighting the risk of slower economic growth. The firm warns that increased tariffs could elevate consumer prices and reduce real income, which may ultimately affect consumer spending.










