U.S. Court Rules Against U.S. President Trump's Reciprocal Tariffs

U.S. President Donald Trump’s reciprocal tariffs have been invalidated by the Court of International Trade, reports Automotive Logistics—however, auto tariffs will remain in place.

The federal court ruled that the International Emergency Economic Powers Act did not give Trump the authority to impose reciprocal tariffs over trade deficits.

“The court does not pass upon the wisdom or likely effectiveness of the president’s use of tariffs as leverage,” said the court. “That use is impermissible, not because it is unwise or ineffective, but because the law does not allow it.”

At the beginning of April, Trump enacted a 90-day pause on the reciprocal tariffs, instead having a 10% baseline global tariff implemented. Both the reciprocal tariffs and the stand-in 10% tariff were ruled unlawful, in addition to IEEPA tariffs of 25% on imports from Canada and Mexico and 20% tariffs on Chinese imports.

What are not impacted by the ruling are the 25% tariffs on imports of vehicles, automotive parts, and steel and aluminum.

The administration has already responded with a notice of appeal, potentially taking the issue to the Supreme Court.