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May 29, 2025 2:12 PM - The Canadian Press

U.S. federal court rules against Trump tariffs

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The U.S. Court of International Trade decision said Trump does not have the authority to wield tariffs on nearly every country through the use of the International Economic Emergency Powers Act of 1977.(Photo: The Canadian Press)

United States President Donald Trump hit a major legal barrier for his plan to realign global trade after a federal court on Wednesday blocked both the sweeping "Liberation Day" tariffs and the fentanyl-related duties against Canada and Mexico.

The U.S. Court of International Trade decision said Trump does not have the authority to wield tariffs on nearly every country through the use of the International Economic Emergency Powers Act of 1977. Trump hit Canada with economywide duties in March after he declared an emergency at the northern border related to the flow of fentanyl. He partially paused levies a few days later for imports that comply with the Canada-U.S.-Mexico Agreement on trade.

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