Court Strikes Down Trump’s IEEPA Tariffs Citing Legal Overreach

The Court of International Trade overturned President Trump’s tariff orders and gave the Trump administration ten days to comply.

A federal trade court on Wednesday struck down the “Liberation Day” tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act (IEEPA). These tariffs included a 10% universal levy on most imports and elevated “reciprocal” tariffs targeting approximately 60 countries with rates ranging from 11% to 50%, based on perceived trade imbalances.

The court also invalidated country-specific tariffs on Canada, Mexico, and China, finding that their justification under emergency declarations related to drug trafficking and national security “do not deal with the threats set forth in those orders.” The judges determined that the law does not grant the president the power to impose sweeping, across-the-board tariffs on imports, and ordered an immediate halt to the measures.

The judges gave the Trump administration 10 days to issue orders that comply with the permanent injunction. In response, the Trump administration immediately appealed to the U.S. Court of Appeals for the Federal Circuit, and announced plans to petition the Supreme Court on Friday if the appeals court does not block the tariffs ruling. A White House spokesperson defended the tariffs, arguing that long-standing trade deficits constitute a national emergency and criticized the court for overruling an executive response to that emergency. Markets responded favorably to the judge’s decision, with the U.S. dollar rising and global equities gaining.

Tariffs imposed under different legal statutes remain unaffected by this ruling. Specifically, tariffs on steel and aluminum imports under Section 232 of the Trade Expansion Act of 1962, as well as tariffs on Chinese goods under Section 301 of the Trade Act of 1974, continue to be in effect. These measures were implemented to address national security concerns and unfair trade practices, respectively, and were not part of the IEEPA-based tariff regime invalidated by the court.

While the court blocked tariffs imposed under IEEPA, it acknowledged that the president may still impose temporary tariffs of up to 15% for 150 days under separate statutory authority to address trade imbalances—an option the administration could pursue. According to analysts at Goldman Sachs, such tariffs could be enacted within days if the administration chooses that route. If upheld, the ruling weakens a central component of Trump’s trade agenda and limits the executive branch’s ability to impose broad tariffs without congressional involvement. It also introduces uncertainty into ongoing trade negotiations with the European Union, China, and others—an issue compounded by analyst concerns that relying on short-term tariff powers may further destabilize global supply chains, impacting pricing, sourcing, and investment planning.

Any health system can tailor SRS to their suppliers and items in order to assess exposure to tariffs and other risks, gain supply chain transparency, and move from reactive to proactive risk mitigation. Contact SRS Support (support@supplyrisk.com).

The following SRS reports can be tailored to the items you buy to assess tariff exposure for your health system:

• “Products Tariffs – Special Report” – details suppliers sourcing from tariffed countries (in the Prevent dashboard).
• “Products by Country (Tariff Risk)” – choose any country to see which items you buy are manufactured there (in the Prevent dashboard).
• “Products Subject to Section 301 China Tariffs” – downloads current section 301 tariffs on healthcare item made in China (in the Prevent dashboard).
• “Products Sites and Risks” – lists manufacturing location for all items you buy from the supplier (in the Prevent dashboard after you drill down on a supplier).
• “Supplier Geopolitical Summary” – summarizes exposure for all countries (in the Respond dashboard).

If you have not yet tailored SRS for the items you buy, it’s easy to do so with an SRS subscription.

For more information, see:

Reuters, US court blocks most Trump tariffs, says president exceeded his authority, May 29

BBC News, US trade court blocks Trump’s sweeping tariffs. What happens now?, May 29

MSN, Trade court blocks President Trump’s tariffs, ruling they exceed legal authority, May 29

Associated Press, Federal court blocks Trump from imposing sweeping tariffs under emergency powers law, May 29

CNN, Appeals court pauses ruling that blocked Trump’s tariffs, May 29

MSN, US court’s tariff ruling gives markets short-term pop, long-term angst, May 29

BBC News, Trump administration to go to Supreme Court on Friday if unable to block tariff ruling, May 29

CNBC, Federal trade court strikes down Trump’s reciprocal tariffs, May 28

Supply Risk Solutions, U.S. Announces Major Trade Deals with UK and China, May 15

Supply Risk Solutions, Tariffs Deepen Pressure on U.S. Healthcare Supply Chains, May 7

Supply Risk Solutions, U.S. Tariffs Drives “Foreign Trade Zone” Surge, April 30

Supply Risk Solutions, U.S. Launches Tariff Probes Into Chip and Pharmaceutical Imports, April 17

Supply Risk Solutions, Supply Chains Upended by Historic Tariffs, April 3

Supply Risk Solutions, Manufacturers Plan to Pass Tariff Costs on to Their Customers, April 1

Association of Supply Chain Management, Relentless Tariffs and a Supply Chain Crossroads, March 28

Manufacturing.Net, Survey Uncovers Tariff Impact on Manufacturers and Their Adjustment Strategies, March 12

Supply Risk Solutions, Impact of Upcoming Tariffs on Healthcare Sourcing, March 11

Supply Risk Solutions, Trump’s Partial Tariff Exemptions Leave Majority of Canada-Mexico Duties in Place, March 7

Supply Risk Solutions, U.S. Tariffs on Canada and Mexico Take Effect, March 4

Supply Risk Solutions, U.S. Unveils New Tariff Plans, February 28

Supply Risk Solutions, Trump Confirms Canada and Mexico Tariffs Will Take Effect on March 4, February 25

Supply Risk Solutions, Trump Proposes 25% Tariffs on Cars, Chips, Pharma Products, February 20

Supply Risk Solutions, China Counters U.S. Tariffs with Targeted Tariffs, Export Controls, and Investigations, February 4

Supply Risk Solutions, Trump Delays Tariffs on Mexico and Canada, February 3

Supply Risk Solutions, U.S. to Impose Tariffs on Key Trading Partners Feb. 1, February 1

Supply Risk Solutions, Trump’s Tariff Policies Spark Global Uncertainty, January 27

Supply Risk Solutions, Trump Proposes 25% Tariffs on Canada and Mexico Starting February 1, January 21

Supply Risk Solutions, Tariff Planning Requires Product Transparency, January 13

Supply Risk Solutions, U.S. Tariff Plans Bring Urgency to Knowing Product Manufacturing Locations, December 2

Supply Risk Solutions, Tariffs Push Manufacturers to Rethink Supply Chain Strategies, November 15

Supply Risk Solutions, Tariffs Spur Urgency to Understand Product Manufacturing Locations, November 11

Supply Risk Solutions, List the Products You Buy That Are Subject to China Import Tariffs, October 28

White & Case, United States Finalizes Section 301 Tariff Increases on Imports from China, September 17