The U.S. Court of International Trade ruled that President Donald Trump exceeded his legal authority in imposing tariffs on countries across the world in a severe blow against the administration’s economic policy.
The unanimous judgement cites the major questions doctrine and nondelegation doctrine as reasons to support a narrow interpretation of the International Emergency Economic Powers Act. The payment of tariffs imposed under the IEEPA will, by court order, be suspended, and the government may be required to repay tariff duties that have already been collected.
“The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,” the court wrote in its ruling. “Any interpretation of IEEPA that delegates unlimited tariff authority is unconstitutional.”
The ruling does not affect tariffs implemented under other laws, such as the tariffs on steel and aluminum imposed under the Trade Expansion Act of 1962.
This marks the latest in a string of legal setbacks for the Trump administration in court. Many of the White House’s policies have been subject to litigation in the federal court system, where the administration is on track to face a record number of nationwide injunctions during the president’s second term.
The Department of Justice is expected to appeal the decision.
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