President Donald Trump speaks during an event to announce new...

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House on April 2, 2025, in Washington. Credit: AP/Mark Schiefelbein

After months of upheaval surrounding President Donald Trump’s trade war, and the levies imposed on goods from nearly every country around the world, a court has blocked most of his tariffs.

The federal Court of International Trade ruled Wednesday that Trump exceeded his authority in imposing broad tariffs on goods imported from around the world, once again throwing new uncertainty into the future of U.S. trade.

The White House is likely to challenge the court’s decision. For now, many tariffs have been halted. Here’s which tariffs have been struck down, and what you need to know about the court’s decision.

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Which tariffs have been halted?

Two broad categories of tariffs implemented by the Trump administration have been halted by the court’s decision.

Trump’s global tariffs announced on April 2, which affected nearly every country around the world, have been struck down. These tariffs imposed a 10 percent tax on imports from nearly all countries. Initially, Trump said those tariffs would rise to much higher rates for dozens of countries. But those so-called reciprocal tariffs on more than 75 countries were later delayed and not scheduled to take effect until July. Trump also imposed a higher rate on imports from China, which was lowered after negotiations between the two countries.

The court also halted 25 percent tariffs that Trump - citing an emergency over illegal migration and drug trafficking - imposed on many products from Canada and Mexico, and tariffs of 20 percent on most goods from China for its alleged role in facilitating production of the opioid fentanyl.

The court also appears to have halted Trump’s order that removed duty-free shipping for small-value packages, or “de minimis” shipping previously used by retailers such as Shein and Temu, on goods from China, though the immediate effect on de minimis was unclear.

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Which tariffs are still in effect?

Trump’s tariffs on specific products such as steel, aluminum and automobiles are not affected and are still in effect. Trump did not use the emergency powers to implement these levies, instead relying on a 1962 trade law. Typically, the commerce secretary or another government official has to investigate whether the imports affect national security under this law, so the process takes longer than using emergency powers.

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Why are the courts blocking some tariffs?

The court considered whether Trump had overstepped his authority in imposing tariffs using a 1977 law that granted him emergency powers over the economy, the International Emergency Economic Powers Act, or IEEPA. It found that the law does not allow the president to “impose unlimited tariffs on goods from nearly every country in the world.”

“The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder,” the panel of three judges wrote in its decision.

The court ruling applied to two cases, one filed by 12 states led by Democratic governors, and one by five businesses that said they had been harmed by the president’s inappropriate use of executive power.

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What is the Court of International Trade?

The U.S. Court of International Trade is a federal court based in New York that oversees disputes involving customs and international trade law. It is made up of nine judges who are appointed for life. Cases are generally overseen by one judge - though in the cases involving executive orders or acts of Congress, a three-judge panel can be appointed.

Appeals of the court’s decisions go to the U.S. Court of Appeals for the Federal Circuit and could eventually end up at the Supreme Court.

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What are investors and businesses saying?

Major stock market indexes were trending up in after-hours trading on Wednesday. The markets have been tumultuous since Trump’s trade war began, reacting with unease to the uncertainty of the policies and the tariffs, which have raised prices for consumers and businesses.

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What happens next?

The White House had said it would appeal an unfavorable decision even before the ruling was issued, so it’s unlikely the matter has been put to rest. Shortly after the decision was issued, the Justice Department said in a court filing that it will appeal.

Apart from the appeal, the president has other ways to impose tariffs, so it’s possible the Trump administration will consider other routes.

“I think people should not look at this and say, ‘This is a definitive victory,’” said Joseph Steinberg, a professor in the University of Toronto’s economics department. “It will be appealed.”

Michael J. Lowell, a trade attorney with Reed Smith who runs the firm’s global regulatory enforcement group, said he expects the court’s decision would be upheld through appeals.

“I think this will stick,” he said. “I think the administration knows it will stick.”

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