It clarified that the International Emergency Economic Powers Act (IEEPA) does not grant the president the power to unilaterally impose tariffs without congressional approval.
Experts say the decision is a serious blow to Trump’s economic strategy, as tariffs were a key tool in his trade policy. The ruling could also affect trade agreements implemented earlier this year and sets a precedent limiting the president’s ability to act without Congress.
It is noteworthy that President Trump had imposed tariffs on several countries, including Pakistan. Last month, he had warned that a court ruling against his tariffs could create economic challenges for the United States.