President Donald Trump’s effort to reinstate sweeping global tariffs hit a major legal barrier and his ability to move forward may now depend on Congress.
On May 28, 2025, the U.S. District Court in Washington and the U.S. Court of International Trade ruled that Trump misused emergency powers under IEEPA to justify broad April tariffs, including a baseline 10% duty on goods from dozens of nations. The courts found that trade deficits do not meet the national security threat required under the Act.
The ruling ordered the tariffs to be lifted within 10 days and blocked U.S. Customs from collecting further duties. Targeted tariffs under Section 232 — such as those on steel, cars, and aluminium — are unaffected and remain in place.
Although, the following day, a federal appeals court granted a bid from the White House to temporarily suspend the lower court’s order, legal alternatives for imposing sweeping tariffs are few. Section 122 allows for temporary duties, but only at modest rates and for short durations. Section 338 and Section 301 could be used more selectively, but offer nothing close to April’s broad measures.
The legal process could stretch over a year and may ultimately reach the Supreme Court, depending on how the two appeals courts handling related challenges rule. If those courts issue contradictory decisions, the likelihood of a prolonged legal process increases. If they align, a quicker resolution could follow. For now, the legal status of the tariffs remains unsettled despite their temporary reinstatement.
Even with the current pause in place, there is still significant uncertainty for businesses, with no clarity yet on whether the courts will ultimately uphold or strike down the policy.
Experts believe Trump’s most viable path may be legislative. Some allies are lobbying to embed tariff authority into his flagship tax bill, currently before the Senate.
With policy, legal, and geopolitical implications still unfolding, we’ll keep tracking developments and share updates as they emerge.
