A United States federal court has delivered a major setback to Donald Trump's economic agenda, ruling that the former president overstepped his authority by imposing sweeping tariffs under emergency powers.
On 28 May 2025, the U.S. Court of International Trade invalidated the so-called 'Liberation Day' tariffs, stating they were not justified by any actual national emergency, and must therefore be withdrawn.
The tariffs, which had targeted hundreds of billions worth of goods from countries including China and Mexico, were a cornerstone of Trump's protectionist policy. But in a landmark legal decision, judges stated that the International Emergency Economic Powers Act (IEEPA) does not grant the president unilateral authority to disrupt global trade. The move immediately sparked celebration among free trade advocates—and sent global stock markets soaring.
