“Notice is hereby given that defendants appeal to the United States Court of Appeals for the Federal Circuit from the Court’s opinion and final judgment of May 28, 2025,” the court filing said.
Trump tariffs ruled illegal by federal judicial panel
A panel of federal judges blocked President Donald Trump from enforcing some of his harshest tariffs on China and other key trading partners, ruling that he did not have “unbounded authority” to tax imports from nearly every country.
Read more: US court blocks Trump’s “Liberation Day” tariffs, citing overreach of power
The decision by the U.S. Court of International Trade marks a notable early blow to Trump’s tariff strategy, weakening one of his main tools for pushing other nations into more favourable trade agreements with the U.S.
Read more: Trump’s TACO trade is no joke: How memes, markets and tariffs collide
A first in presidential history
According to a New York Times report, Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA) to levy tariffs was unprecedented. The law typically applies to sanctions and embargoes, not tariffs, and doesn’t even mention duties. Still, Trump relied on it to announce and later pause wide-ranging import duties in April. He also cited the law to justify tariffs on Canadian and Mexican goods, blaming those countries for fentanyl entering the U.S.
Court finds overreach in tariff powers
In its ruling, the Court of International Trade concluded that Trump’s tariffs “exceed any authority granted” under IEEPA. The panel of three bipartisan judges, addressing lawsuits filed by both states and businesses, found many of the tariffs were issued “illegally”.
It remains uncertain exactly when the tariffs will stop being collected. The ruling gave the administration up to 10 days to begin phasing them out through formal procedures. In response, the Trump administration immediately filed an appeal with the U.S. Court of Appeals for the Federal Circuit.
For now, the decision could weaken Trump’s negotiating position with around 18 countries, where discussions are still underway. His administration had been using the possibility of sweeping tariffs, enacted unilaterally without Congress, as leverage. Some top officials had recently warned the court that a ruling against the tariffs could derail those talks.
The ruling doesn’t apply to duties imposed under different laws, such as those targeting steel, aluminum, and cars, or potential tariffs on semiconductors, pharmaceuticals, and other key goods.
The decision followed two lawsuits, one filed by five small American businesses and the other by 13 US states. The companies involved, including a wine importer and an educational kit manufacturer, argued that the tariffs would harm their operations.
The tariffs, which ranged between 10% and 54%, targeted countries that sell more to the US than they purchase, especially China.
White House criticises court ruling
A White House spokesperson, Kush Desai, responded, “It is not for unelected judges to decide how to address a national emergency.” Desai added that the court had ignored the economic harm caused by trade deficits.
The Trump administration swiftly filed an appeal. The case may eventually reach the US Supreme Court. Meanwhile, the Justice Department argued the lawsuits should be dismissed, saying only Congress can challenge a national emergency and that the businesses had not yet paid the tariffs.
Trump’s tariffs are part of a broader trade war strategy intended to bring manufacturing jobs back to the US and reduce the country’s $1.2 trillion trade deficit. However, critics quoted by Reuters say this approach has disrupted global trade and negatively impacted American businesses.
Financial markets reacted positively to the court’s ruling. The US dollar rose sharply, while stock markets in Asia and the US also posted gains.
Oregon Attorney General Dan Rayfield, who led the states’ lawsuit, called the tariffs “reckless and unlawful.” He said, “This ruling shows that laws matter, and that a President can’t simply create trade rules at will.”
Market reactions: Stocks up, gold down
Indian markets opened slightly higher on Thursday, taking cues from positive trends in Asian markets and Wall Street futures after a U.S. trade court blocked President Trump’s sweeping tariff plan on imports.
As of 9:15 a.m. IST, the Nifty 50 was up 0.29% at 24,825.10, while the BSE Sensex rose 0.34% to 81,591.03. All 13 major sectoral indices were trading in the green, with midcap and smallcap stocks gaining around 0.5% each.
The Court of International Trade ruled that Trump overstepped his authority with his tariff proposal. While the White House has since appealed the decision, the ruling sparked optimism that the administration might pull back from the steepest tariff levels, boosting global investor sentiment.
The verdict also strengthened the U.S. dollar and dampened demand for gold, typically seen as a safe-haven asset, as risk appetite improved.
Asian stocks and U.S. futures gained further momentum, helped by Nvidia’s strong quarterly results and upbeat revenue forecast released after U.S. markets closed.
Inputs from agencies
