Trump Fights Court Rulings Blocking Global Reciprocal Tariffs

The United States government is engaged in a high-stakes legal battle over the legality of President Donald Trump's "Liberation Day" tariffs. In late May and early June 2025, the U.S. Court of International Trade and a U.S. district court ruled that the sweeping reciprocal tariffs, implemented in April to combat trade deficits and fentanyl smuggling, were unlawful. The courts determined that the International Emergency Economic Powers Act does not grant the president unbounded authority to impose tariffs, as that power resides with Congress.

Despite these rulings, the U.S. Court of Appeals for the Federal Circuit granted a stay, temporarily restoring the tariffs while the legal process continues. The administration also successfully paused a preliminary injunction that had protected toy companies Learning Resources and hand2mind from the levies. In response to the judicial setbacks, Donald Trump doubled tariffs on foreign steel and aluminum to 50 percent, citing the 1962 Trade Expansion Act as an alternative legal authority.

Trump has condemned the rulings as political and warned that requiring congressional approval would destroy presidential power and lead to the economic ruination of the United States. The conflict has extended to the conservative legal movement, with Trump criticizing the Federalist Society and nominating former defense lawyer Emil Bove to the Third Circuit Court of Appeals. Meanwhile, the OECD lowered its 2025 U.S. growth forecast from 2.8% to 1.6%, citing supply chain disruptions and inflation caused by the trade policies.