The recent ruling by a federal court in New York has dealt a significant blow to President Donald Trump's signature economic policies, specifically his plan to impose sweeping tariffs under the International Emergency Economic Powers Act (IEEPA). The decision, made by judges Timothy Reif, Jane Restani, and Gary Katzman, found that IEEPA does not authorize "Worldwide, Retaliatory, or Trafficking Tariff Orders," which were challenged by several American businesses dependent on imported goods.
This ruling affects five small businesses in New York and Virginia, which import goods from countries targeted by the duties. The court's decision was made in response to lawsuits arguing that Trump exceeded his authority under IEEPA, leaving US trade policy at his discretion.
The decision is significant as it rejects the legal basis for some of Trump's most controversial actions, including tariffs on imported autos and steel. As a result, the court has allowed tariffs already in place to remain effective while the White House considers an appeal to the Supreme Court.