American Court Rules Trump did not have the authority to impose tariffs -

By Pepper Parr

May 29^th, 2025

BURLINGTON, ON

Donald Trump holding an Executive Order he has signed. To date, there are more than 100 of these documents in place.

United States President Donald Trump hit a major legal barrier for his plan to realign global trade after a federal court on Wednesday blocked both the sweeping “Liberation Day” tariffs and the fentanyl-related duties against Canada and Mexico.

The U.S. Court of International Trade decision said Trump does not have the authority to wield tariffs on nearly every country through the use of the International Economic Emergency Powers Act of 1977.

FIX HERE The ruling from the three-judge panel at the New York-based federal court said “any interpretation of International Economic Emergency Powers Act of 1977, usually referred to by the acronym IEEPA, that delegates unlimited tariff authority is unconstitutional.” It said “the challenged tariff orders will be vacated,” representing a nationwide injunction against any further imposition of the duties.

It’s expected the Trump administration will appeal. White House spokesman Kush Desai said “it is not for unelected judges to decide how to properly address a national emergency.”

Global stock markets have been in turmoil and supply chains have been upended as Trump used unprecedented presidential power to enact his tariffs. Up until Trump’s return to the White House, IEEPA had never been used by a president to impose tariffs.

Wednesday’s decision sowed doubt into how Trump will continue to implement his signature economic tariff policy.

Fentanyl seized by police at the Canada US border.

Trump hit Canada with economy-wide duties in March after he declared an emergency at the northern border related to the flow of fentanyl. He partially paused levies a few days later for imports that comply with the Canada-U.S.-Mexico Agreement on trade.

U.S. government data shows a minuscule volume of fentanyl is seized at the northern border.

Trump took his trade war to the world in April  then walked back the most devastating duties a few hours later but left a 10 per cent universal tariff in place for most countries.

The White House on Wednesday maintained that “historic and persistent” trade deficits were an emergency. Desai said deficits “decimated American communities, left our workers behind, and weakened our defense industrial base – facts that the court did not dispute.”

“This is a giant power grab by the president and the court was very clear that he cannot claim this kind of unlimited tariff authority,” said George Mason University law professor Ilya Somin.

Somin, along with the Liberty Justice Center, represents the small businesses. They argued IEEPA does not mention tariffs, nor is there even a synonym, such as duties. The U.S. Constitution gives power over taxes and tariffs to Congress and Somin said Trump is misusing the statute.

The court found Trump’s unlimited use of tariffs to hit every country with duties is not in line with IEEPA and is unconstitutional.

Somin said it “is a big victory for us and for opponents of these illegal, harmful and abusive tariffs.” It is also a big victory for Canada, he added.