A US federal court has ruled that President Donald Trump exceeded his constitutional authority when he imposed broad import tariffs under the International Emergency Economic Powers Act (IEEPA).
This decision effectively invalidates most of the administration’s tariff orders issued since February, including those targeting imports from China, Canada, and Mexico.
According to Reuters, the court’s ruling was prompted by lawsuits from small businesses and a coalition of US states, which argued that the tariffs would create significant financial burdens.
The decision has been welcomed by financial markets, with US stock futures rising and major tech stocks, such as Nvidia, seeing notable gains.
Reuters reported that while the ruling does not affect sector-specific tariffs, such as those on steel and aluminium, it represents a significant setback for Trump’s tariff-centred trade policy.
The White House has indicated plans to appeal the decision, which could further shape the future of US trade policy.
READ: Port of Los Angeles posts strong April before tariff impact
Emily Stausbøll, Xeneta Senior Shipping Analyst, commenting on the court decision, said that it is “clearly positive news for shippers who have faced extraordinary increases in the cost of importing goods into the US,” but warned that “the story is far from over.”
She noted that Trump “has other levers to pull to achieve the same outcome as the sweeping tariffs.”
She pointed out that “the decision by the US Court of International Trade will add further fuel” to import demand and that shippers using bonded warehouses are in the “advantageous position of being able to wait” before releasing goods.
Stausbøll also cautioned that Trump’s other trade tools, such as port fees and the SHIPS for America Act, could trigger “a new era of confusion in supply chains,” with shippers potentially facing “a raft of surcharges and levies.”
According to Descartes’ May Global Shipping Report, US container imports posted robust growth in April 2025, with volumes increasing by 1.2 per cent over March and 9.1 per cent year-on-year (YoY).
