President Donald Trump speaks in the Oval Office of the White House on March 31, 2025, in Washington, D.C. Credit - Andrew Harnik—Getty Images The federal Court of International Trade on WednesdayblockedPresident Donald Trump's sweeping global tariffs, arguing that emergency laws invoked by the Administration did not give Trump unilateral authority to impose the levies. Per the court's ruling,the U.S. Constitutiongives Congress exclusive powers to regulate trade with other countries, something which Trump cannot supersede. The May 28 ruling also blocked a different set of levies theTrump Administration imposed on Canada, China, and Mexico, for what the White House said was in response to the unacceptable flow of drugs and illegal immigrants across the U.S. border. However, on Thursday, Trump was granted a reprieve, of sorts, as a federal appeals court temporarily spared his tariffs while it considers the legal challenge. Trump will be able to continue collecting tariffs under an emergency powers law for now. Trump announced most of his tariffs—the ones he calls "reciprocal"— on April 2, his self-appointed "Liberation Day." A baseline rate of 10% was placed on U.S. imports, while additional "reciprocal" tariffs were doled out on top of those. Trump thenannounced a 90-day pause on the additional tariffsfor most countries, allowing time for negotiations. The U.S. and China later came to a separate agreement, agreeing in May tosignificantly reduce tariffs on each otherfor a 90-day period. The Court of International Trade's May 28 ruling was based on two separate cases. One lawsuit was filed by a coalition of 12 state governments on April 24, led by Oregon Attorney General Dan Rayfield."The court's ruling is a victory not just for Oregon, but for working families, small businesses, and everyday Americans. President Trump's sweeping tariffs were unlawful, reckless, and economically devastating. They triggered retaliatory measures, inflated prices on essential goods, and placed an unfair burden on American families, small businesses and manufacturers," said Rayfield,reacting to the May 28 victory."We brought this case because the Constitution doesn't give any president unchecked authority to upend the economy. This ruling reaffirms that our laws matter, and that trade decisions can't be made on the President's whim." The other lawsuit was filed by the nonpartisan Liberty Justice Center on April 14, representing five small businesses facing the "devastating" impact of such tariffs. TheLiberty Justice Center arguedthat the Trump Administration could not "issue across-the-board worldwide tariffs without congressional approval." The counsel said that the five owner-operated businesses it filed on behalf of had all been "severely harmed by the tariffs," highlighting "the human and economic toll of unchecked executive power." Responding to the May 28 court victory,Jeffrey Schwab, senior counsel and director of litigation at the Liberty Justice Center, said: "This ruling reaffirms that the President must act within the bounds of the law, and it protects American businesses and consumers from the destabilizing effects of volatile, unilaterally imposed tariffs." Co-counsel Ilya Somin added: "It's great to see that the court unanimously ruled against this massive power grab by the President. The ruling emphasizes that he was wrong to claim a virtually unlimited power to impose tariffs, that IEEPA (International Emergency Economic Powers Act) law doesn't grant any such boundless authority, and that it would be unconstitutional if it did." The New York-based wine company said that Trump's tariffs: "threaten to unravel everything VOS has spent a generation building." The company, which has been running for almost 40 years, said that its expertise in wine and spirits is something that "cannot be replicated," in the U.S., pushing back against Trump's often repeated statement that if products are made in the U.S., they won't be subjected to tariffs.The company highlighted four main issues that have arisen as a result of Trump's tariffs threats. VOS said that buyers have been holding off on orders due to uncertainty, amid Trump's back-and-forth decision making regarding levies and deadlines. The small business also flagged how its cash flow is under "immediate strain," even if costs are eventually passed onto customers. Additionally, VOS said it cannot gamble on unknown prices months in advance and that the knock on-effects, such as reduced purchasing capacity and smaller cash flow, from partners have also hit the business hard. Based near Lake Erie in Pennsylvania, wholesale and retailer of fishing tackle and apparel FishUSA said that it is "reeling from the tariffs." In a statement issued prior to the court ruling, the companysaid: "We're a Pennsylvania business employing dozens of hardworking Americans, trying to compete in a global market. These tariffs make it nearly impossible to plan, price, or grow." The retailer added that it has been particularly impacted by tariffs imposed on Asian countries, from which it imports many of its manufactured fishing goods. Suppliers have already preemptively raised prices in anticipation, and FishUSA says that switching to U.S.-based production could take years to fully enact. David Levi runs the business out of a workshop in Charlottesville, Virginia. The company designs small electronic kits aimed at teaching children how to build simple devices and gadgets. Its most popular product instructs children how to assemble a musical instrument from scratch. In a statement published by the Liberty Justice Center, Levi likened Trump's tariffs to a "death sentence." Much like other businesses, Levi has found the uncertainty and back-and-forth nature of Trump's tariffs to be a major stumbling block when it comes to completing orders."I could place an order for parts today, and by the time it arrives, the tariff might have doubled," Levi said. "I can't plan. I can't budget. I can't grow." A small business, Terry Precision Cycling focuses solely on women's cycling, the first company to do so, according to its founder, Nik Holm. But Trump's tariffs were described by Holm as the "single greatest threat," that his company has faced in its 40 years of operations. In a statement,Holm said: "They're indiscriminate, unmanageable, and totally disconnected from economic reality." Holm said his company joining the lawsuit not just about the economic impact, but "about defending the right to build and run a business without getting crushed by unpredictable government overreach." At its Washington State factory, Genova Pipe manufactures ABS pipe, importing crucial resin materials from South Korea and Taiwan. Most of the company's product is then exported to Canada. Genova Pipe has an additional six factories across the U.S. After joining the lawsuit,Andrew Reese, the president of the company, said in a statement: "The newly-imposed tariffs are increasing our raw material costs and hindering our ability to compete in the export market." Reese said that over 75% of the company's resin material imports are sourced from Asia, and that replacing these suppliers with U.S.-based manufacturers was not a feasible option. With most of his customers in Canada, Reese has major concerns that buyers will opt for local, cheaper manufacturers if tariffs force Genova Pipe to inevitably raise its prices. TheCourt of International Trade, established in its current form in 1980, has jurisdiction across the country, in particular over any civil cases related to international trade and U.S. customs. Under theCustoms Courts Act of 1980, the Court of International Trade "may grant any relief appropriate to the particular case before it, including, but not limited to, money judgments, writs of mandamus, and preliminary or permanent injunctions." It also has jurisdiction over civil cases brought by the United States relating to "import transactions, as well as counterclaims, cross-claims, and third-party actions relating to actions pending in the court." In its May 28 ruling, the court said: "The worldwide and retaliatory tariff orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs." The Court of International Trade on Wednesday ruled in favour of a permanent injunction on the tariffs, whichTrump had 10 days to put into effectby issuing new orders that reflected the ruling. However, the judges also said that Trump hadthe ability to impose tariffs of 15% for 150 daysin cases of "serious and large" trade deficits and unfair trade practices, available due to the Trade Act passed by Congress in 1974. But these tariffs could still be subject to constraints. On Thursday, a federal appeals court agreed to temporarily maintain many of Trump's tariffs, sparing the Trump Administration from having to halt the levies. The news came hours after the Trump Administration, in addition toappealing the May 28 ruling, filed arequest for a pauseon the injunction, arguing that "if a stay is not entered, an injunction creates a foreign policy disaster scenario, causing significant and irreparable harm to U.S. foreign policy and national security." In the filing, the Trump Administration attorneys said that if the Court of International Trade denied this motion, they would be taking the matter to the U.S. Supreme Court. "If the Court denies this motion, defendants respectfully request an administrative stay of the judgment for seven days to allow time for the Federal Circuit and, if necessary, the Supreme Court to consider a stay," reads the official filing. The Trump Administration's dispute will first land at the U.S. Court of Appeals, but could ultimately end up in the U.S. Supreme Court. White House Deputy Press SecretaryKush Desai said on Wednesday:"President Trump pledged to put America first, and the Administration is committed to using every lever of executive power to address this crisis and restore American greatness." When news first broke that the trade court had blocked Trump's "Liberation Day" tariffs, White House Deputy Chief of Staff for PolicyStephen Miller said on X:"The judicial coup is out of control." Contact usatletters@time.com.
