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TRUMP'S GLOBAL TRADE PLANS ARE IN DISARRAY

First India Jaipur

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May 30, 2025

AFTER A US COURT RULING ON ‘LIBERATION DAY' TARIFFS

TRUMP'S GLOBAL TRADE PLANS ARE IN DISARRAY

A U.S. court has struck down the Trump administration's sweeping "Liberation Day" tariffs, ruling they exceeded presidential emergency powers and bypassed Congress's authority on trade.

The decision forces the rollback of broad-based tariffs within 10 days, disrupting current trade negotiations with over 18 countries. While key industry-specific tariffs remain, this ruling curtails Trump's preferred high-pressure tactic of unilateral economic threats. With appeals underway and further legal challenges pending, uncertainty now clouds U.S. trade policy—casting doubt over its credibility, shaking markets wary of protectionist unpredictability

A United States court has blocked the so-called "Liberation Day" tariffs that US President Donald Trump imposed on imported goods from around 90 nations. This puts implementation of Trump's current trade policy in disarray.

The Court of International Trade ruled the emergency authority Trump used to impose the tariffs could not override the role of Congress, which has the right to regulate commerce with other countries.

Tariffs imposed via other legislative processes — such as those dealing with cars, steel and aluminium — continue to stand. But the broad-based “reciprocal” tariffs will need to be removed within ten days of the court’s ruling. Trump administration officials have already filed plans to appeal.

The ruling calls into question trade negotiations underway with more than 18 different nations, which are trying to lower these tariffs. Do these countries continue to negotiate or do they wait for the judicial process to play out?

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