### Federal Courts Overturn Trump's Tariffs: A Major Legal Setback In a significant legal development, multiple federal courts have ruled against former President Donald Trump's tariffs, asserting that he exceeded his authority under the International Emergency Economic Powers Act (IEEPA). The U.S. Court of International Trade and a federal trade court both found that Trump's sweeping tariffs, which were a cornerstone of his economic policy, were unconstitutional and lacked congressional approval. This ruling could potentially halt ongoing trade wars and reshape U.S. trade policy moving forward. The courts emphasized that the Constitution grants Congress exclusive authority to regulate commerce with foreign nations, a power that cannot be overridden by presidential emergency powers [https://realinvestmentadvice.com/resources/blog/judges-trump-trumps-tariffs][https://nypost.com/2025/05/29/business/second-federal-court-rules-against-trumps-signature-tariffs-intensifying-legal-battle][https://www.marketwatch.com/story/trumps-sweeping-global-tariffs-blocked-by-federal-trade-court-3f4873eb?mod=mw_pushly&send_date=20250528]. ### Breakdown of the Legal Rulings and Implications 1. **Court Rulings**: - The U.S. Court of International Trade ruled that Trump overstepped his authority by imposing tariffs without congressional consent [https://www.standard.co.uk/news/politics/trump-tariffs-court-ruling-trade-white-house-b1230197.html]. - A three-judge panel stated that the IEEPA does not grant the president unlimited power to impose tariffs, emphasizing the need for a balance of powers [https://www.law.com/newyorklawjournal/2025/05/29/trump-cant-use-national-security-powers-to-impose-unlimited-tariffs-trade-court-says]. 2. **Economic Impact**: - Following the court's decision, U.S. stock futures surged, indicating a positive market reaction to the ruling [https://www.marketwatch.com/story/trumps-sweeping-global-tariffs-blocked-by-federal-trade-court-3f4873eb?mod=mw_pushly&send_date=20250528]. - The ruling could lead to potential refunds of up to $10 billion for tariffs already collected, as the tariffs were deemed unconstitutional [https://thedeepdive.ca/trumps-tariffs-blocked-by-court-puts-10b-refunds-on-the-table]. 3. **Political Reactions**: - The ruling has intensified the ongoing legal battle surrounding Trump's tariffs, with at least seven lawsuits challenging the legality of these levies [https://chicago.suntimes.com/money/2025/05/28/federal-trade-court-trump-tariffs-emergency-powers-law]. - Critics of the tariffs have expressed relief, viewing the court's decision as a necessary check on presidential power [https://ca.news.yahoo.com/thank-judges-stopped-trumps-destructive-170420563.html]. ### Supporting Evidence and Data - **Court Decisions**: - The U.S. Court of International Trade's ruling was based on the premise that the president's use of emergency powers to impose tariffs was unconstitutional, as it undermines the separation of powers [https://www.jdsupra.com/legalnews/federal-trade-court-strikes-down-bulk-3920163]. - **Market Reactions**: - Following the announcement of the court's decision, stock futures rose significantly, reflecting investor optimism about the potential end of the trade war [https://www.marketwatch.com/story/trumps-sweeping-global-tariffs-blocked-by-federal-trade-court-3f4873eb?mod=mw_pushly&send_date=20250528]. ### Conclusion: A Turning Point in U.S. Trade Policy The recent rulings against Trump's tariffs mark a pivotal moment in U.S. trade policy, highlighting the limitations of presidential power in economic matters. 1. **Legal Precedent**: The courts have reinforced the principle that Congress holds the exclusive authority to regulate trade, thereby curtailing the executive branch's ability to unilaterally impose tariffs. 2. **Economic Implications**: The potential for refunds and a positive market response suggests that the ruling may lead to a more stable economic environment. 3. **Future of Trade Policy**: This legal setback could prompt a reevaluation of U.S. trade strategies and the role of emergency powers in economic governance. In summary, the courts have not only struck down Trump's tariffs but have also set a significant legal precedent that may influence future trade policies and executive actions [https://www.benzinga.com/news/25/05/45660322/trump-tariffs-struck-down-by-federal-court-major-blow-to-white-houses-trade-strategy-report].