The ruling voids many of the tariffs that President Trump imposed to encourage free and equal trade and encourage the “reshoring” of manufacturing.
Chainstoreage.com reported the panel of three federal judges from the court unanimously ruled that Trump exceeded his legal authority when he enacted reciprocal tariffs on imports from most countries on April 2, 2025. This included a baseline 10% tariff on virtually all imports, as well as an 125% additional levy on imports from China that brought the total tariff on some Chinese products to as high as 145%.
Roughly 60 countries which charge higher duties on U.S. imports had tariffs higher than 10% imposed on their goods coming into the country, although those tariffs have already paused until early July and the U.S. and China reached a 90-day pause on most tariffs on May 12.
The court’s ruling also nullifies a 25% tariff on nearly all goods coming to the U.S. from Canada and all products being imported from Mexico which was put in place in March 2025 (although Trump had already exempted some products before the court issued its decision).
In the ruling, the judges said that by imposing universal tariffs Trump exceeded the authority he is granted under the International Emergency Economic Powers Act, which he invoked to implement tariffs without Congressional approval.
The ruling also said that certain tariffs imposed on Red China, Mexico and Canada over illegal fentanyl trafficking from those countries are invalid because they do not deal with threats relating to drug smuggling. (Editor’s note: What tha…)
The Trump administration said it plans to appeal the decision. “We are reviewing the court’s opinion and preparing our response,” a White House spokesperson said.
The case now heads to the US Court of Appeals for the Federal Circuit, and potentially the Supreme Court.
The decision represents a significant blow to one of Trump’s most aggressive uses of executive power and throws into disarray recent trade talks with key allies.
It also casts uncertainty over deals already reached with nations such as the UK and Red China, reported the New York Post.
The court’s ruling covers a wide range of tariffs, including levies on fentanyl-related goods from Canada, Mexico and Red China, as well as reciprocal tariffs that had impacted nearly every major US trading partner.
However, it leaves intact duties implemented under other laws, including tariffs on autos, steel and aluminum imposed under Section 232 of the Trade Expansion Act of 1962, which permits actions on national-security grounds.
Red China praised the ruling and urged the US to permanently abandon the tariffs.
Analysts say the court’s decision could give the US leverage in resetting stalled negotiations — or at least remove a key obstacle.
“We believe one reason bilateral negotiations had stalled was that US trading partners may have anticipated this outcome,” wrote Aniket Shah, a strategist at Jefferies, quoted by the New York Post.
- Trump tariffs
- judicial activism
- trade negotiations
- US Court of International Trade
- International Emergency Economic Powers Act (IEEPA) of 1977
- free trade
- trade barriers
- China tariffs
- fentanyl
- Trade Expansion Act of 1962
