A federal court on Wednesday blocked President Donald Trump from imposing broad new tariffs under emergency powers.
The United States Court of International Trade ruled that the president exceeded his authority under the 1977 International Emergency Economic Powers Act by unilaterally enacting the so-called “Liberation Day” tariffs, which targeted most U.S. trading partners.
The ruling followed lawsuits from small businesses and a coalition of 12 states, arguing that tariffs require congressional approval and that trade deficits don’t qualify as a national emergency.
The court left in place Trump’s earlier tariffs on autos, steel and aluminum, which were enacted on national security grounds. However, it halted more recent levies on imports from countries including Canada, China and Mexico.
Trump’s administration filed an immediate appeal, and the case is expected to reach the Supreme Court.