Finance Politics 

Judges Strike Down Trump Tariffs, Siding With China Over U.S. Industry

In a blow to U.S. trade enforcement, the U.S. Court of International Trade has permanently blocked a set of tariffs imposed under the Trump administration that targeted illicit Chinese trade activity.

The decision vacates the so-called “Liberation Day” tariffs—implemented under Executive Order 14257—ruling they fall outside the legal scope of the International Emergency Economic Powers Act (IEEPA).

Case No. 25-00066, filed by importers including Microtiks and FishUSA, ended in summary judgment against the United States.

The court declared there was “no genuine dispute as to any material fact” and permanently enjoined enforcement of the challenged tariff orders.

Translation: a federal trade court just told the executive branch it can’t invoke emergency powers to shield American supply chains if those actions interfere with established foreign commerce laws.

The IEEPA, enacted in 1977 to address foreign threats to U.S. national security and the economy, was invoked by President Trump in 2024 to justify the Liberation Day tariffs as a response to “China’s economic aggression,” including IP theft, market manipulation, and trafficking in counterfeit or coercively acquired goods.

The court’s ruling sidesteps this broader context. Instead, it determined that the tariffs did not directly address the “threats set forth” in the emergency declaration and thus could not stand under IEEPA authority.


A Dangerous Precedent

Unelected judges—not elected leaders—are now drawing the boundaries of America’s trade defense. And the beneficiaries are predictable: Chinese exporters, U.S. multinationals with overseas dependencies, and a global system built on cheap labor and regulatory capture.

American manufacturers lose. Again.

Congress must clarify and expand emergency trade authorities—or risk seeing every future tariff challenged, overturned, and litigated into oblivion. If this ruling stands, the White House may be permanently hobbled in any effort to confront economic warfare.

Judicial overreach. Executive paralysis. Beijing wins. Again.

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