Overview

• A three-judge panel of the U.S. Court of International Trade ruled on May 28 that President Donald Trump exceeded his authority under the International Emergency Economic Powers Act by imposing reciprocal duties on more than 50 countries.
• The court permanently vacated the “Liberation Day” orders announced April 2 and earlier tariffs targeting Canada, Mexico and China dating back to February.
• Judges held that IEEPA does not grant the president unlimited power to enact trade penalties without congressional approval, invoking separation of powers and nondelegation principles.
• The ruling stemmed from a lawsuit filed by the nonpartisan Liberty Justice Center on behalf of five small U.S. import businesses that argued the emergency rationale lacked statutory support.
• As the first federal court decision on these measures, the opinion may force the administration to seek legislative authority for future trade penalties.