The U.S. Court of International Trade has issued a ruling that blocks Donald Trump's 'Liberation Day' tariffs, stating that Trump overstepped his authority.

What are the Liberation Day tariffs?

On April 2, 2025, President Donald Trump declared "Liberation Day" during a White House Rose Garden ceremony, unveiling a sweeping set of tariffs aimed at overhauling U.S. trade policy.

Framing the move as a "declaration of economic independence," Trump announced a two-tier tariff system: a universal 10% baseline tariff on imports from nearly all countries, effective April 5, and higher, country-specific "reciprocal" tariffs starting April 9, targeting nations with significant trade surpluses with the U.S.

The Trade Court's ruling

The U.S. Court of International Trade ruled that President Trump lacked the authority to impose the tariffs, affirming that the power to regulate commerce with foreign nations rests with Congress. The court concluded that the emergency statute the White House relied on did not grant the president unilateral authority to enact the tariffs.

What's next?

Just minutes after the court issued its ruling, the Trump administration filed an appeal, seeking to overturn the decision. The outcome of the appeal remains uncertain.

Trump’s sweeping tariffs have sent shockwaves through the U.S. economy, triggering a sharp decline in stock markets, putting intense pressure on small businesses, and driving up prices for consumers across nearly every sector.