A federal court in New York has ruled against former President Donald Trump’s sweeping “Liberation Day” tariffs, finding they were imposed unlawfully under emergency powers.

The Court of International Trade determined that Trump exceeded his constitutional authority by bypassing Congress, which holds exclusive control over U.S. trade policy.

Announced on April 2, the sweeping tariffs ranged from 10% to 54%, though most countries are currently only subject to the base 10% rate due to a temporary 90-day suspension.

The ruling does not affect targeted tariffs on specific goods such as steel, aluminum, and automobiles, which were implemented under a different legal statute.

The court’s decision introduces new uncertainty into Trump’s ongoing trade negotiations with worldwide leaders. It remains unclear whether the ruling will impact the recently signed U.S.-UK trade agreement or other pending deals.

Despite the court’s finding, the tariffs will continue to be collected while the government pursues an appeal.

Should the ruling be upheld, businesses affected by the tariffs could become eligible for refunds—with interest—on previously paid duties. This includes the base 10% tariff and Chinese imports, which peaked at 145%.

Whatever side of the political landscape you come from, there’s not many that would accuse this administration of being boring! Westbound will continue to track developments over the coming days and weeks.

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