US Court Blocks Trump’s Broad Tariffs, Dismisses India-Pakistan Truce Justification

New York [US], May 29, 2025 (ANI): A US federal court on Wednesday ruled against President Donald Trump’s sweeping tariff measures, deeming them unlawful and beyond presidential authority. The US Court of International Trade in Manhattan also rejected the Trump administration’s justification that the tariffs were part of a broader effort to mediate the recent escalation between India and Pakistan.

As reported by CNN, the court concluded that Trump’s tariffs, introduced under the International Emergency Economic Powers Act (IEEPA), were not legally justified. This included 30% duties on Chinese imports, 25% tariffs on select goods from Mexico and Canada, and a general 10% duty on a wide array of imports. However, tariffs on autos, steel, and aluminium enacted under the Trade Expansion Act remain unaffected.

The court’s panel of judges unanimously ruled that the IEEPA does not grant the President the authority to impose such retaliatory or global tariffs, stating:

“The worldwide and retaliatory tariff orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs.”



Filed by the Liberty Justice Centre on behalf of small businesses, including wine importer VOS Selections, the case also coincided with a suit from twelve Democratic-led states. Plaintiffs argued the tariffs had caused financial distress to American enterprises and violated constitutional provisions separating executive and legislative powers.

A permanent injunction was issued, halting enforcement of the disputed tariffs, with the government given ten days to respond. While the Trump administration has already filed an appeal, the ruling could dismantle a large portion of Trump’s trade policy before final deals are concluded with affected countries.

Notably, the court also dismissed Trump’s argument that tariff leverage was used to negotiate a ceasefire between India and Pakistan in April. The judges found no legal basis to validate such foreign policy tactics under the IEEPA.

Markets reacted positively to the news. Major US stock index futures spiked in after-hours trading following the ruling.

Earlier, Trump had introduced a 10% universal tariff on April 2 under his “reciprocal” trade plan. Though implementation was paused on April 9 for 90 days, the base 10% tariff remained in effect—now also halted by the court ruling.