A federal trade court on Wednesday ruled that President Donald Trump's tariffs are illegal, blocking the administration's trade policy.
The U.S. Court of International Trade, a three-judge panel based in New York, ruled that the Trump administration’s tariffs issued under the International Emergency Economic Powers Act (IEEPA) are invalid and cannot be implemented. Tariffs are normally approved by Congress.
"The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder," the ruling stated.
The judges said Trump must issue new orders reflecting the permanent injunction within 10 days.
The announcement, made late on Wednesday, sent global stock markets soaring, while U.S. stocks also opened higher on Thursday.
New York Attorney General Letitia James, who was part of a coalition of attorneys general that sued Trump, said the decision was a major victory that upheld the law and protected illegal policies from threatening American jobs and economy.
“The law is clear: no president has the power to single-handedly raise taxes whenever they like," James said in a statement. "These tariffs are a massive tax hike on working families and American businesses that would have led to more inflation, economic damage to businesses of all sizes, and job losses across the country if allowed to continue."
