Trump Tariff Rejig Pending Appeal on Card After US Court Block
US President Donald Trump announced Golden Dome Defence shield program (Image The White House)
US Court Blocks Trump Tariffs, Citing Overreach of Presidential Authority
By TRH News Desk
NEW DELHI, May 29, 2025 – US President Donald Trump is likely to focus more sectors in his tariff policy. The Trump administration is mulling a challenge to the US federal court which struck down most of the tariff orders.
The federal court ruled that Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA). The decision brought mixed reactions worldwide. Yet, it also revealed the uncertainty in the global trade landscape amid ongoing negotiations with major trading partners like the European Union, China and India.
The court invalidated all tariff orders issued by Trump since January 2025 that were based on the IEEPA, a law intended for addressing “unusual and extraordinary” threats during national emergencies. However, the ruling did not extend to industry-specific tariffs on automobiles, steel, and aluminum, which were enacted under a different statute.
Liza Tobin, a Chinese expert on trade matters, in a post on LinkedIn, said: “Expect an appeal headed straight to SCOTUS. Meanwhile, watch for the administration to pivot hard toward sectoral tariffs.”
She argued that the Trump administration may also “dust off existing authorities.” Experts have noted that the verdict is more focused on legal basis employed by Trump to slap sweeping tariffs across the world.
“This ruling underscores the limits of presidential power under the IEEPA. Trump’s broad application of tariffs as a negotiation tool has been curtailed, at least temporarily,” said Legal Eagle, a user on X, who posts on law matters.
Meanwhile, Trade Policy Watch warned that the “decision creates a legal quagmire for ongoing trade talks, especially with China and the EU. Markets are already reacting, with uncertainty driving volatility.”
The New York Times highlighted the broader implications, stating, “The ruling, if it stands, blows a giant hole through Trump’s strategy to use steep tariffs to wring concessions from trading partners.” CNN’s analysis added, “Analysts at Goldman Sachs noted the order does not block sector-specific levies and there were other legal avenues for Trump to impose across-the-board and country-specific tariffs, but the immediate impact is significant.”
The Trump administration is facing increasing roadblock from federal courts, with several of the decisions stalled by the judicial interventions. Pending an appeal before the Supreme Court, experts stated that the Trump administration may resort to sectoral tariffs to find a way out.
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