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-Editorial
A federal court blocked President Donald Trump’s efforts to impose sweeping tariffs under emergency powers, dealing a significant blow to a key component of his economic agenda. The ruling, issued by a three-judge panel of the U.S. Court of International Trade in New York, challenges the legal foundation of tariffs that Trump imposed under the International Emergency Economic Powers Act (IEEPA) during his current term.
The decision came in response to multiple lawsuits that argued the tariffs—branded by Trump as “Liberation Day” measures—exceeded presidential authority and exposed U.S. trade policy to the unpredictable whims of the executive branch.
The panel concluded that the IEEPA does not authorize the executive branch to impose such broad economic restrictions without congressional oversight. The court granted a permanent injunction against the tariffs and instructed the White House to complete the administrative process of rescinding them within 10 days. While many of the tariffs were already suspended, the ruling also invalidated separate levies on imports from China, Mexico, and Canada, which had been justified by the administration as responses to drug trafficking and unauthorized immigration.
White House Deputy Press Secretary Kush Desai criticized the ruling, arguing that it undermines the president’s ability to respond to national emergencies.
“Trade deficits amount to a national emergency that has decimated American communities left our workers behind, and weakened our defense industrial base—facts that the court did not dispute,” Desai said. “It is not for unelected judges to decide how to properly address a national emergency. President Trump pledged to put America First, and the administration is committed to using every lever of executive power to address this crisis and restore American greatness.”
California, which had filed a separate lawsuit in April challenging the tariffs, welcomed the ruling. Governor Gavin Newsom and Attorney General Rob Bonta issued statements applauding the decision and reaffirming their stance that the tariffs were both harmful and unlawful.
“These tariffs are illegal, full stop,” Governor Newsom stated. “The court agreed today that Donald Trump overstepped his authority with his unlawful tariffs, which have created chaos and hurt American families and businesses.”
Bonta echoed that sentiment, noting that the court’s decision in Oregon v. Trump aligned with the arguments made by California and 11 other states in parallel litigation. “IEEPA does not authorize the Trump Administration to impose these tariffs,” he said. “We are pleased with the court’s decision and are proud to have supported our sister states’ arguments.”
California officials say the tariffs have had a particularly damaging impact on the state’s economy—projected to cost consumers $25 billion, shrink the U.S. GDP by $178 billion, and result in more than 64,000 job losses in California alone.
Business leaders also weighed in, citing uncertainty and volatility as major concerns. “Dramatic shifts in trade policy and increases in tariff costs can cause disruptions which threaten millions of jobs and billions of dollars in tax revenue,” said Jennifer Cohen of the Pacific Merchant Shipping Association. “It is critical that we avoid uncertainty in the marketplace that impedes American access to essential goods.”
Peter Katz of the Silicon Valley Chamber Coalition emphasized the burden on small businesses. “Already, a significant number of family-owned restaurants and merchants have seen increased expenses in essential supplies, from food costs to packaging to raw materials. These businesses do not have the luxury of waiting months—or years—for things to normalize.”