On Wednesday, the New York-based Court of International Trade delivered a landmark decision by blocking President Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs. The ruling specifically vacates orders targeting imports under fentanyl-related measures on goods from Canada, Mexico and the Chinese mainland, as well as the "worldwide, retaliatory" duties announced on April 2.
At the heart of the case was a complaint filed by five U.S. small businesses represented by a nonpartisan legal advocacy group. They argued that IEEPA grants the president emergency powers for national security and foreign policy, but does not authorize across-the-board tariffs. The court agreed, permanently enjoining the contested orders and leaving the administration to seek other routes to impose duties.
Political scientist Sun Taiyi of Christopher Newport University says the decision undercuts the administration's favorite trade tool. "If the IEEPA authority is revoked, objectives like raising tariff revenue, pressuring firms to onshore manufacturing and leveraging duties in negotiations become much harder," he explains. The White House has already appealed to the U.S. Court of Appeals for the Federal Circuit and is likely to request an emergency stay to keep tariffs in place during the process.
Meanwhile, the administration could still impose temporary import taxes of up to 15 percent for 150 days under the Trade Act of 1974, a less sweeping but still powerful mechanism. It may also turn to conventional trade barriers and work with or around Congress to advance its strategy.
For U.S. small and medium-sized enterprises, the stakes remain high. Many have already faced rising costs as corporations such as Walmart warn of price hikes, signaling broader economic pain. Industry insiders predict more legal challenges are on the way, and the issue could reach the Supreme Court.
While this chapter of the trade war is far from over, the ruling offers a potential turning point. Whether through emergency stays, alternative statutes or congressional action, the administration's next steps will shape the trajectory of U.S. trade policy – and global markets – in the months ahead.
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Q&A: What next after Trump's tariffs blocked by U.S. trade court?
cgtn.com
