The court ruled only Congress can set tariffs
of ConsumerAffairsMay 29, 2025
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The U.S. Court of International Trade struck down the Trump administrations reciprocal tariffs as unconstitutional.
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The tariffs covered a broad swath of imports, including metals, agriculture, and machinery, affecting U.S. relationships with key trade partners.
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The ruling reinforces the requirement for Congressional approval before major changes to trade policy can be enacted.
A federal court has ruled against a Trump administration policy imposing reciprocal tariffs on foreign imports, dealing a blow to the presidents.
The decision, issued by the U.S. Court of International Trade, blocks the U.S. government’s ability to unilaterally match tariffs imposed by foreign countries without specific Congressional authorization.
The now-blocked measure, dubbed the Reciprocal Trade Act, had allowed the executive branch to impose duties on products from countries that levied higher tariffs on U.S. goods. The Trump administration framed the policy as a way to level the playing field and address what it considered unfair trade practices. Critics, however, argued that the law gave the president unchecked authority to disrupt global trade relationships.
What the tariffs covered
The reciprocal tariffs targeted a wide range of imported goods, including:
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Steel and Aluminum Products: These were among the most heavily taxed items, aimed primarily at countries like China and members of the European Union.
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Agricultural Goods: Various food products, including dairy and meat imports, faced additional duties under the policy.
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Manufactured Equipment: Machinery and automotive parts from nations with higher barriers to U.S. exports were also subject to increased tariffs.
The court found that the act exceeded the authority granted to the executive under existing trade law and violated constitutional principles related to the separation of powers. Should thedecision stand, prices of many imported goods would probably remain stable.
The White House immediately announced that it will appeal the decision.
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