A federal court on Wednesday delivered a significant blow to President Donald Trump's economic agenda, blocking his administration from imposing sweeping tariffs on imports under an emergency-powers law. The ruling, issued by a three-judge panel at the New York-based U.S. Court of International Trade, swiftly cast doubt over Trump's signature trade policies that have generated global financial turbulence.

The court's decision follows multiple lawsuits contending that Trump had overstepped his constitutional authority, leaving U.S. trade policy vulnerable to his unilateral declarations. The President has consistently asserted that these tariffs are crucial to boost manufacturing jobs to the U.S. and to generate sufficient revenue to ease federal budget deficits. He has also utilized tariffs as a potent negotiating tool, aiming to compel other nations into agreements more favorable to the United States.

White House spokesperson Kush Desai vigorously defended the administration's stance, stating that trade deficits constitute a national emergency that has "decimated American communities, left our workers behind, and weakened our defense industrial base — facts that the court did not dispute." Desai affirmed the administration's commitment to "using every lever of executive power to address this crisis and restore American greatness."

However, for the immediate future, Trump's ability to leverage the threat of widespread import taxes to exert his will on the global economy appears significantly curtailed, as such actions would now necessitate congressional approval. The ruling acknowledged that a president retains the authority to temporarily levy import taxes of up to 15% for 150 days on nations with which the U.S. maintains a substantial trade deficit, under Section 122 of the Trade Act of 1974.

The ruling represents a categorical rejection of the legal foundation underpinning some of Trump's most impactful and controversial actions during his four-month-old second term. The administration promptly filed a notice of appeal, signaling that the case will almost certainly reach the Supreme Court for a final determination. Despite the immediate appeal, the decision delivers a sharp setback to the administration's trade strategy.

The case was heard by a panel comprising Judges Timothy Reif (appointed by Trump), Jane Restani (appointed by former President Ronald Reagan), and Gary Katzman (an appointee of former President Barack Obama). In their ruling, the judges stated, "The worldwide and retaliatory tariff orders exceed any authority granted to the president by IEEPA to regulate importation by means of tariffs," referring to the 1977 International Emergency Economic Powers Act.

The U.S. Court of International Trade, a federal court specializing in civil lawsuits related to international trade law, was the venue for this decision. While tariffs typically require congressional approval, Trump has consistently maintained that he possesses the inherent power to address trade deficits, which he has labeled a national emergency.