A federal court ruled on Wednesday that U.S. President Donald Trump overstepped his authority by imposing tariffs that raised import costs for everyone from major corporations to everyday Americans.
However, the administration quickly filed an appeal on Wednesday evening, leaving the situation uncertain for both consumers and businesses and potentially prolonging the battle over whether Trump’s tariffs will remain in place—an outcome that could reshape the global economy, CNN reports.
A three-judge panel from the U.S. Court of International Trade, a relatively obscure court based in Manhattan, blocked Trump’s global tariffs, which had been implemented under emergency economic powers. The ruling also prevents Trump from enforcing tariffs introduced earlier this year targeting China, Mexico, and Canada—measures that were framed as a strategy to combat the influx of fentanyl into the United States.
The court sided with a permanent injunction, effectively halting Trump’s global tariffs before agreements with most other trading partners were even reached. The judges ordered that administrative directives be issued within 10 calendar days to carry out the injunction. This means that most—but not all—of Trump’s tariffs would be paused if the ruling holds up on appeal and possibly before the Supreme Court.
Specifically, the ruling halts Trump’s 30% tariff on Chinese imports, a 25% tariff on certain goods from Mexico and Canada, and a universal 10% tariff on most products entering the United States. However, it does not affect the 25% tariffs on automobiles, auto parts, steel, or aluminum, which were enacted under Section 232 of the Trade Expansion Act—a different legal framework from the one Trump relied on for his broader trade actions.