US court overturns Trump's tariffs: a liberation for trade!

US court overturns Trump's tariffs: a liberation for trade!

On May 29, 2025, a US federal court declared most of the import duties imposed by Donald Trump to be unlawful. As the South German newspaper Reportedly, the United States International Trade Tribunal ruled that Trump overrode the authority of the US Congress in imposing these tariffs. The decision affects, among other things, tariffs against important trading partners such as Mexico, Canada and China, which Trump introduced by decree.

The court made it clear that only the US Congress has the power to regulate trade and impose tariffs. This means that the president's emergency powers cannot be used to legitimize such trade actions. Despite this decision, tariffs on steel, aluminum and cars and auto parts remain unaffected because they were not justified by a national emergency.

Reactions and further steps

The US Justice Department plans to appeal the decision. The path leads through the Federal Court of Appeal and possibly all the way to the Supreme Court. Loud daily news The lawsuit was filed by several small US companies and twelve predominantly Democratic states. These groups argue that the tariffs are harming their economic activity. The companies suing include a wine and spirits importer from New York and a manufacturer of school sets and musical instruments from Virginia.

Trump had previously declared a national emergency over fentanyl smuggling, thereby creating a framework for the tariffs. He cited a 1977 American law that gives the president the ability to intervene in trade matters. While the Trump administration criticized the ruling as a “judicial coup,” business actors praised the decision, which temporarily relieved pressure from tariffs on companies.

Economic impact

After the verdict, the markets reacted positively. The U.S. dollar rose against the Swiss franc and Japanese yen, while U.S. stock futures rose on exchanges. But the decision could complicate trade deal negotiations between the U.S. and other countries, especially since Trump had also threatened counter-tariffs against dozens of trading partners, including a threat of 20 percent import fees for the EU.

In a further step, Trump announced a 90-day tariff break to enable individual trade agreements. The reactions to the decision already show the deep political rifts left by the former president's tariff policy. While the lawsuit is fought out in court by small businesses and states, it remains unclear how US trade relations will develop in the future.