White House Tariffs Quashed by US Trade Court

A federal court has largely blocked White House tariffs following a lawsuit by Democrat-led states.

The ruling, handed down by the U.S. Court of International Trade Wednesday (May 28), suspends the bulk of the tariffs, including the fentanyl-related tariffs on Canada, China and Mexico, the higher duties on goods from China and other countries, and the global flat tariff.

In making this ruling, the court sided with the attorneys general from 12 states who sued the administration last month, saying the tariffs had violated the law by imposing tariffs under the International Emergency Economic Powers Act (IEEPA).

“The law is clear: no president has the power to single-handedly raise taxes whenever they like,” New York State Attorney General Letitia James said in a news release.

“These tariffs are a massive tax hike on working families and American businesses that would have led to more inflation, economic damage to businesses of all sizes, and job losses across the country if allowed to continue.”

The White House has criticized the ruling and said it would appeal.

“It is not for unelected judges to decide how to properly address a national emergency,” Kush Desai, the White House deputy press secretary, said in a statement. “President Trump pledged to put America First, and the administration is committed to using every lever of executive power to address this crisis and restore American greatness.”

As PYMNTS wrote on Wednesday, the on-again, off-again nature of the tariffs has rattled U.S. businesses, including the middle-market firms that employ 48 million Americans.

“The White House’s levies against nearly all countries, including China and the European Union, go through near-weekly changes, with new tariffs announced, then paused, delayed or rolled back,” that report said.

After months of tariff-related intrigue, these businesses’ confidence is shaken, forthcoming PYMNTS Intelligence research has found.

In February, 40% of product leaders among goods-producing companies said they felt “highly certain” they could cope with the levies. That number dropped to 37% in March before plummeting to 5% in April.

“For the first time, no product executives at middle-market goods firms said they expect a mostly or completely positive financial impact from tariffs, a decline from 35% in February,” PYMNTS added. “Instead, more than half of product executives in the goods segment anticipate a mostly or completely negative financial outcome.”