Legal Blow to Trump’s Tariffs Tests Limits of Executive Power

President Trump’s efforts to reshape global trade through tariffs have suffered a sharp legal defeat, with limited options for reinstating his sweeping “Liberation Day” duties.

On May 28, the U.S. Court of International Trade ruled that Trump acted beyond his powers by using the IEEPA to impose broad import tariffs. The court emphasised that IEEPA was never intended to address trade imbalances, and only applies in genuine national emergencies.

The court’s injunction takes effect within 10 days, forcing U.S. Customs to stop collecting the invalidated duties. However, sector-specific tariffs under Section 232 — covering cars, steel, and aluminium — remain active and legally justified.

Trade experts say fallback legal options are scarce. Section 122 of the 1974 Trade Act allows only 150-day tariffs capped at 15%. Section 338 and Section 301 offer narrowly defined powers, such as responding to foreign discrimination or IP violations.

Some observers speculate that Trump’s recent — and short-lived — 50% tariffs on EU goods may have been an early attempt to invoke Section 338. But a broader reset may require Congress. His supporters are urging lawmakers to codify tariff powers in current tax legislation.

As legal challenges continue and the administration considers its next move, we’ll keep you informed of the fast-changing implications for global trade and supply chains.