Tariffs Tumble: US Court’s Bombshell Ruling Brings Trump’s Global Trade War to a Screeching Halt

Tariffs Tumble: US Court's Bombshell Ruling Brings Trump's Global Trade War to a Screeching Halt

A US court has largely deemed the global tariffs imposed by President Donald Trump to be unlawful. The decision, announced on Wednesday, concerns tariffs introduced by Trump under the pretext of national emergency powers, including the so-called “Freedom Day” tariffs of April 2.

The ruling also blocks the enforcement of tariffs against China, Mexico and Canada, intended to combat the smuggling of fentanyl into the US. Furthermore, the court has ordered the halt of the 30 percent tariff on Chinese goods, the 25 percent tariff on specific goods from Mexico and Canada and the 10 percent universal tariff on most imported goods to the US, as per the judges’ will. Not affected, however, are the 25 percent tariffs on autos, auto parts, steel, or aluminum, which have a different legal basis.

The lawsuit was filed in April by a libertarian law firm and represented a wine trader and five other small businesses, which, according to their own accounts, have been significantly harmed by the tariffs.

The US Court of International Trade, based in Manhattan, is rarely in the spotlight, but as a federal court, it is responsible for the majority of trade-related matters and can handle and decide cases across the country and those involving foreign entities.