A federal court ruled Wednesday that former President Donald Trump exceeded his authority by imposing broad tariffs on imports. The decision stops several tariffs that Trump set using emergency powers.

The case was heard by the U.S. Court of International Trade in Manhattan. The court issued a permanent injunction that blocks Trump’s global tariffs, including those announced on April 2, known as the “Liberation Day” tariffs. The ruling also halts tariffs imposed earlier this year on imports from China, Mexico, and Canada. These tariffs were aimed at addressing fentanyl trafficking.

The court gave government agencies 10 days to act on the injunction. If the ruling is upheld, most of Trump’s tariffs could be paused. However, tariffs on autos, steel, and aluminum under a different law remain unaffected.

After the ruling, stock futures rose. Dow futures gained nearly 500 points, or 1.1%. S&P 500 futures increased 1.4%, and Nasdaq futures climbed 1.6%.

The lawsuit was filed by the Liberty Justice Center, representing small businesses including wine seller VOS Selections. They argued the tariffs hurt their business. The court also considered a separate suit by twelve Democratic-led states.

The judges ruled that the International Emergency Economic Powers Act (IEEPA), which Trump used to impose the tariffs, does not allow the president to impose tariffs.

“IEEPA does not authorize the worldwide, retaliatory, or trafficking tariff orders,” the court said. The judges found that Trump lacked the power to impose these tariffs even after declaring a national emergency.

The Trump administration appealed the ruling Wednesday night, so the issue is likely to be decided by higher courts.

The Department of Justice argued that the tariffs involve political questions beyond the courts’ reach. The plaintiffs said IEEPA does not mention tariffs, making the actions unlawful.

The case could eventually reach the Supreme Court. (TJV NEWS)