What tariffs were struck down and why did the court do it?
The court ruled that President Trump went beyond his legal powers by using the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs. According to the court, there wasn’t enough legal basis to treat the economic concerns cited—like drug smuggling and immigration—as national emergencies.
Here are the key tariffs that were overturned:
- A universal 10% tariff on all imported goods, which was set to begin April 5, 2025.
- A 25% tariff on imports from Canada and Mexico, based on concerns over border security and drug trafficking.
- A 20% tariff on goods from China, linked specifically to the fentanyl crisis.
- The removal of duty-free privileges for small-value shipments coming from China.
The court emphasized that these measures infringed on Congress’s power over trade and taxation, which led to their invalidation. This decision effectively stops a broad application of trade restrictions under the emergency powers act unless Congress is directly involved.
Which Trump-era tariffs are still active and why?
While some of Trump’s newer tariffs were scrapped, several others remain in place because they were enforced under different legal frameworks.
Here are the tariffs that are still valid:
- 25% tariff on steel and aluminum imports, implemented under Section 232 of the Trade Expansion Act of 1962. These were justified on national security grounds.
- A 25% tariff on automobiles and auto parts, also under Section 232, has been active since April 3, 2025.
- Tariffs on semiconductors and pharmaceuticals, some set at 25% or more, are still pending clarification on legal backing but haven’t been challenged yet.
- A 25% tariff on imports from countries that buy Venezuelan oil, enacted through Executive Order 14245, also remains untouched.
So while the court struck down some headline tariffs, a significant portion of Trump’s trade policy is still holding strong.
How did the markets respond to the tariff rollback?
Financial markets welcomed the court’s decision. The Nasdaq Composite jumped more than 1%, especially as tech stocks got a boost from reduced trade tensions. Companies like Nvidia led the rally, thanks in part to strong earnings and less pressure from import costs. This legal win also helped ease global concerns, especially among U.S. allies affected by the universal tariffs. Markets in Europe and Asia showed modest gains, reflecting investor relief that trade relationships may stabilize.
What legal path could Trump’s team take next?
Despite the court’s ruling, the Trump administration isn’t backing down. Officials have already announced they will appeal to the Supreme Court, which means the legal battle is far from over.
In addition, Trump’s legal advisers are exploring the use of Section 122 of the Trade Act of 1974. This law gives the president more flexibility to impose tariffs in response to balance-of-payment problems, which may be their next legal strategy to reinstate similar policies.
So while the IEEPA-based tariffs are gone, don’t be surprised if similar measures return under a different legal framework.
What does this mean for businesses and consumers?
For now, importers and small businesses that rely on foreign goods—especially from China, Canada, and Mexico—are breathing a sigh of relief. The removal of these tariffs could lower supply costs, bring back duty-free benefits, and improve pricing stability.
However, there’s still a layer of uncertainty. With the appeal pending and possible new tariff strategies in the works, businesses will need to monitor legal developments closely. Consumers, meanwhile, might see short-term price relief on imported products, but that could shift again depending on future policy changes.
What’s next in the evolving Trump trade policy?
The big takeaway is this: Trump’s trade war isn’t over—it’s just evolving. The court’s ruling may slow down one approach, but the administration is already looking for alternatives. If the Supreme Court hears the case or if new tariff powers are used, we could see another wave of trade restrictions in 2025.
In the meantime, global markets are reacting, businesses are adjusting, and lawmakers in Congress may be prompted to clarify just how much power the president should have in shaping U.S. trade policy.
FAQs:
Q1: What Trump-era tariffs were overturned by the U.S. court?
The court ended broad import tariffs on goods from China, Mexico, and Canada.
Q2: Which Trump trade tariffs still remain active in 2025?
Tariffs on steel, autos, and Venezuelan oil-linked imports are still in effect.
