NEW YORK – A federal court on Wednesday (28/5) ruled that United States President Donald Trump overstepped his authority in massively increasing import tariffs that have affected everything from corporate giants to ordinary Americans.

However, the US government immediately filed an appeal later that evening, creating further uncertainty for consumers and businesses both domestically and internationally.

According to CNN (29/5), the ruling could prolong the debate over whether Trump’s tariffs will remain in place, potentially leading to shifts in the structure of the global economy.

A panel of three judges at the US Court of International Trade, a relatively obscure court located in Manhattan, blocked Trump’s global tariffs issued on 2 April 2025, which were imposed under emergency economic powers, including the so-called “Liberation Day” tariffs.

The decision also prevents Trump from reinstating tariffs previously imposed on China, Mexico, and Canada that were designed to combat the inflow of fentanyl into the US.

The court issued a permanent injunction, potentially halting Trump’s global tariffs before agreements are reached with most trade partners. The government has been given 10 calendar days to issue administrative orders to comply with the ruling.

The injunction suspends 30% tariffs on China, 25% tariffs on selected imports from Mexico and Canada, and a universal 10% tariff on most goods entering the United States.

This means most of Trump’s tariffs will be paused if the ruling is upheld through the appeals process and by the Supreme Court.

However, the ruling does not affect 25% tariffs on cars, car parts, steel, or aluminium, as those were imposed under Section 232 of the Trade Expansion Act – a separate legal basis from the one Trump used for his broader trade actions. (DH/MT/ZH)