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U.S. President Donald Trump holds a chart next to U.S. Secretary of Commerce Howard Lutnick as Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., U.S., April 2, 2025. REUTERS/Carlos Barria/File Photo Purchase Licensing Rights, opens new tab
- Court blocks Trump's tariffs, citing overreach of authority
- Constitution grants Congress power to regulate international commerce
- Liberty Justice Center represents small businesses in legal challenge
NEW YORK, May 28 (Reuters) - A U.S. federal court on Wednesday blocked President Donald Trump's "Liberation Day" tariffs from going into effect, ruling that the president overstepped his authority by imposing across-the-board duties on imports from nations that sell more to the United States than they buy.
The Manhattan-based Court of International Trade said the U.S. Constitution gives the U.S. Congress exclusive powers to regulate commerce with other countries that are not trumped by the president's emergency powers to safeguard the U.S. economy.
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The lawsuit, filed by the nonpartisan Liberty Justice Center on behalf of five small U.S. businesses that import goods from countries targeted by the duties, was the first major legal challenge to Trump's tariffs.
The companies - which range from a New York wine and spirits importer to a Virginia-based maker of educational kits and musical instruments - have said the tariffs will hurt their ability to do business.
The lawsuit is one of seven court challenges to Trump's tariff policies, along with challenges from 13 U.S. states and other groups of small businesses.
Reporting by Dietrich Knauth and Daniel Wiessner; Editing by Sandra Maler
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Dan Wiessner (@danwiessner) reports on labor and employment and immigration law, including litigation and policy making. He can be reached at [email protected].
