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The court found the 1977 International Emergency Economic Powers Act, which Trump has cited as his basis for ordering massive increases in import duties, does not authorize the use of tariffs.A three-judge panel ruled on several lawsuits arguing Trump exceeded his authority, casting doubt on trade policies that have jolted global financial markets, frustrated trade partners and raised uncertainty over the outlook for inflation and the global economy. The Trump administration filed an appeal, and it was unclear if the White House will respond to the ruling by pausing all of its emergency power tariffs in the interim.
Many of Trump’s double-digit tariff hikes are paused for up to 90 days to allow time for trade negotiations, but the uncertainty over their eventual outcome has stymied businesses and left consumers wary about what lies ahead.
“Just when traders thought they’d seen every twist in the tariff saga, the gavel dropped like a lightning bolt over the Pacific,” Stephen Innes of SPI Asset Management said in a commentary.
