The U.S. Court has officially overturned President Donald Trump’s proposed 'Liberation Day' tariff scheme, dealing a major legal blow to his trade strategy. Court of International Trade. A three-judge panel in Manhattan ruled that Trump exceeded his authority, emphasizing that only Congress holds the power to regulate international trade, even under presidential emergency powers.

Trump had proposed a minimum 10% tariff on all imports, with higher rates for countries with major trade surpluses, aiming to boost domestic industry and cut the trade deficit.

He justified the move using the International Emergency Economic Powers Act (IEEPA), but the court stated that the act cannot be used to exert financial pressure.

The ruling came in response to a lawsuit filed by five U.S. import businesses and 13 states led by Oregon’s Attorney General, arguing the tariffs were illegal and harmful to the economy.