A three-judge panel from the U.S. Court of International Trade ruled Wednesday that former President Trump exceeded his legal authority by imposing sweeping tariffs under the International Emergency Economic Powers Act (IEEPA). The court issued a permanent injunction against the so-called "Liberation Day" tariffs, halting Trump's 10–30% duties on imports from China, Mexico, and Canada, but leaving Section 232 tariffs (like those on autos and steel) unaffected.

The court concluded that IEEPA does not permit the president to impose tariffs as a retaliatory trade tool and warned that such actions circumvent Congress's constitutional powers. The ruling comes in response to lawsuits from small businesses and a coalition of Democratic states. The administration immediately appealed, meaning legal uncertainty remains and a potential Supreme Court showdown is likely.

Markets responded positively, with stock futures surging on the news. The decision could relieve financial pressure on small- and medium-sized U.S. businesses affected by the tariffs.