On 28 May 2025, the US Court of International Trade blocked the tariffs imposed by Trump’s administration under the International Emergency Economic Powers Act.
What has happened?
A panel of judges ruled that the Trump administration cannot use the International Emergency Economic Powers Act (IEEPA) to impose tariffs of the scale currently seen, judging the current 10% baseline tariff and other tariff increases - including those additional rates levied against Canada, China and Mexico - to be unconstitutional. The court held that 'trade deficits' - cited by Trump as the reason for his sweeping tariffs - do not meet the test on an 'unusual and extraordinary' threat in line with IEEPA.
This ruling does not affect sectoral tariffs - tariffs imposed under Section 232 (including steel, aluminium and auto imports) will remain in place. This ruling will also not impact the administration's ability to impose other sectoral tariffs under Section 232.
The court confirmed that the President could use Section 122 of the 1974 Trade Act to impose 15% tariffs for up to 150 days in o
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