Trump's tariffs in court: First victory, but the dispute continues!

Trump's tariffs in court: First victory, but the dispute continues!

An appeals court has temporarily lifted US President Donald Trump's block on almost all tariffs. This was announced on May 29, 2025. The court is continuing to review the case and has invited the parties to submit additional submissions. The decision by the Court of International Trade in New York created difficulties for the Trump administration as it declared nearly all of its tariffs illegal. The background to this decision is both legal and political and raises questions about the president's authority on trade issues.

What is particularly explosive is that the New York court has revoked the Trump administration's permission to impose far-reaching tariffs with reference to the 1977 emergency law. These tariffs were not only “repealed,” but their application was also permanently banned. This decision affects almost all tariffs imposed since Trump took office in 2017, and in particular the punitive tariffs imposed on “Liberation Day” in early April. In the past, Trump had justified tariffs based on partner countries' trade deficits, but temporarily suspended them due to falling financial markets.

Reactions from the White House

The reactions from the White House were critical. Trump's spokeswoman, Karoline Leavitt, called the decision an overreach and said the legal justification for the tariffs was based on common sense. She expressed optimism that the Supreme Court will ultimately rule in Trump's favor. She also emphasized that Trump is keeping his promise to reduce the US trade deficit, which has existed since 1975.

The legal dispute is expected to go through the courts as the US government now has ten days to complete the process of repealing the imposed tariffs. Trump's administration plans to appeal the ruling to the U.S. Court of Appeals. Trump's adviser, Stephen Miller, called the ruling a "judicial coup," further increasing tensions between the executive and judiciary.

A look at tariffs

In addition to the general tariffs of 10 percent on goods from almost all over the world, the decision also affects specific tariffs against Canada, Mexico and China. While most tariffs have been nullified, some industry-specific surcharges of 25 percent on cars, aluminum and steel remain in place because they are not related to the emergency law.

A total of five smaller US companies and twelve states have taken legal action against the tariffs and accuse Trump of violating the constitution. This shows the far-reaching consequences that Trump's trade policy decisions are having on the American economy and political landscape.

The court ruling highlights ongoing trade tensions and the challenges the Trump administration faces in achieving its economic policy goals. The full extent of the legal disputes will only become apparent as the proceedings continue. It will be crucial for Trump and his administration to successfully overcome the legal challenges.