US Court Halts Trump’s Tariffs, Dismisses India-Pakistan Conflict Argument

Ruling limits the President’s emergency powers, striking down broad tariffs that officials claimed helped calm South Asian tensions.

May 29, 2025: In a significant blow to President Donald Trump’s economic agenda, a US trade court on Wednesday blocked his controversial ‘Liberation Day’ import tariffs. The Manhattan-based Court of International Trade ruled that Trump exceeded his authority by imposing sweeping duties on countries with trade surpluses with the US.

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The court’s decision also dismissed the Trump administration’s argument that the tariffs had helped de-escalate recent tensions between India and Pakistan following the Pahalgam terror attack in April. Officials had told the court that negotiations over the tariffs were delicately tied to broader foreign policy goals, including an alleged trade-linked ceasefire between the two nuclear neighbours.

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Court’s Ruling:
The three-judge bench found that the International Emergency Economic Powers Act (IEEPA) doesn’t give the President unchecked authority to set tariffs. “The US Constitution gives Congress, not the President, exclusive power to regulate foreign commerce,” the ruling stated. “An unlimited delegation of tariff authority would constitute an improper abdication of legislative power.”

The court noted that while Trump can act during “unusual and extraordinary threats,” he cannot use that as blanket permission to reshape global trade. Any broader interpretation of the law, the court said, would be unconstitutional.

Trump Administration’s Tariff Push:
Trump’s April 2 tariff plan imposed a 10% baseline on goods from major trading partners, targeting China and the EU in particular. Many of these duties were paused after financial market turmoil. A week later, the White House temporarily reduced some tariffs on China, with both countries agreeing to roll back the measures for at least 90 days.

Legal and Political Fallout:
The court’s decision came in response to lawsuits by five small US businesses and 13 states, who argued that the tariffs hurt their ability to operate. Five additional legal challenges are also pending.

While the White House and plaintiffs didn’t immediately comment, Stephen Miller, Trump’s deputy chief of staff, condemned the decision online, calling it a “judicial coup out of control.”

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What’s Next?
Trump’s team filed a notice of appeal after the ruling, setting the stage for a protracted legal battle. Meanwhile, the decision underscores the limits of presidential powers in trade, even amid claims of national security or international conflict.

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Trump tariffs, US trade, India-Pakistan conflict, Court of International Trade, global economy, emergency powers, tariff wars, international trade