The White House slammed “unelected judges” after a federal court on Wednesday ruled that President Donald Trump does not have the authority to levy sweeping global tariffs on imports under an emergency-powers law.
The Context
Wednesday’s ruling from the U.S. Court of International Trade came in response to two groups of plaintiffs who sued the Trump administration over the tariffs, saying he violated the Constitution by sidestepping Congress to impose the duties.
The federal court’s three-judge panel said in its summary judgment: “The question in the two cases before the court is whether the International Emergency Economic Powers Act of 1977 (‘IEEPA’) delegates these powers to the President in the form of authority to impose unlimited tariffs on goods from nearly every country in the world.”
“The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder,” the panel said.
What To Know
A White House spokesperson reiterated Trump’s criticisms of other countries’ “nonreciprocal treatment” of the U.S. in a statement responding to Wednesday’s ruling.
“These deficits have created a national emergency that has decimated American communities, left our workers behind, and weakened our defense industrial base – facts that the court did not dispute,” the spokesperson told Newsweek.
“It is not for unelected judges to decide how to properly address a national emergency. President Trump pledged to put America First, and the Administration is committed to using every lever of executive power to address this crisis and restore American Greatness,” the spokesperson added.
‘TACO’ Trade
Trump’s tariff policy has led to global market turmoil, particularly after the president rolled out hefty tariffs targeting almost every U.S. trading partner on April 2, which he dubbed “liberation day.”
The president backtracked on the initial announcement after Wall Street tanked, only to later announce additional tariffs targeting specific industries.
He also publicly pressured Jerome Powell, the chairman of the Federal Reserve, to lower interest rates and suggested he might fire Powell, before backing down again.
Most recently, the president threatened a 50 percent tariff on imports from the European Union—before later agreeing to pause those as well, while American and EU officials hold trade talks.
Trump’s back-and-forth on tariffs has become so frequent that the Financial Times columnist Robert Armstrong coined the term “TACO trade” to describe the president’s policies earlier this month.
“TACO trade” refers to the idea that the president spooks the market with his tariff threats before ultimately backing off, causing a stock rally.
“[T]he recent rally has a lot to do with markets realising that the US administration does not have a very high tolerance for market and economic pressure, and will be quick to back off when tariffs cause pain,” Armstrong wrote.
What People Are Saying
Stephen Miller, the White House deputy chief of staff for policy, responded to Wednesday’s ruling on X: “The judicial coup is out of control.”
Former federal prosecutor Elie Honig said on CNN: “This is a fully legitimate federal court. I should note, this is a 3-0 opinion. The three judges on this court were appointed by President Reagan, President Obama and President Trump, so I don’t know where they’re getting this coup language from … This is a huge setback for the Trump administration. As big a deal as the tariffs were, this is as big a deal in the opposite direction. It essentially pauses, for now, rules illegal and unconstitutional almost all of the tariffs that have been put in place.”
Raúl Torrez, the attorney general of New Mexico—one of the states who sued over the tariffs—said in a statement to Newsweek after the ruling: “This ruling is a major victory for our communities, our businesses, and our economy. The Court’s decision confirms what we have long argued: these tariffs were imposed unlawfully and will cause real harm to working families, small businesses, and local industries.”
He added: “We are proud to help protect consumers who continue to struggle with higher prices, and we will continue to stand up for fair, lawful trade policies that support – not hurt – our communities.”
What Happens Next
The Trump administration appealed the court’s ruling on Wednesday evening, after this story was published.
The Associated Press contributed reporting to this story.
Update 05/28/25 8:16 p.m. ET: This article has been updated with additional information.
Update 05/28/25 9:01 p.m. ET: This article has been updated with additional information.
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