Federal Court Blocks Trump Tariff Plan, Citing Executive Overreach

A federal court has unanimously ruled that President Donald Trump lacked the authority to impose his sweeping tariff strategy, siding with small business owners who sued over the economic fallout. The U.S. Court of International Trade declared that the tariffs, enacted under the International Emergency Economic Powers Act (IEEPA), overstepped presidential powers and must be vacated within 10 days. The ruling challenges Trump's use of IEEPA to bypass Congress, with the court stating it does not grant “unbounded authority” to regulate imports. The administration has filed a notice of appeal, with the case potentially heading to the Supreme Court. Plaintiffs Victor and Chloe Schwartz, who run a wine and spirits import business, said the tariffs caused a 16% drop in sales. Critics called the decision a win for constitutional checks and balances, while the White House defended the tariffs as necessary to combat trade deficits and economic decline. Markets reacted positively, with Dow and Nasdaq futures rising.