In a stunning legal development that could reshape the landscape of international trade, a federal court has blocked the majority of President Trump’s sweeping global tariffs, declaring them illegal. The ruling, delivered by the U.S. Court of International Trade in Manhattan, asserts that Trump overstepped his authority by invoking the International Emergency Economic Powers Act (IEEPA) to impose tariffs on trade deficits, which the court deemed a normal economic issue—not an emergency.

This unanimous decision, rendered by a three-judge panel with appointees from Reagan, Obama, and Trump himself, has sent shockwaves through financial markets, causing stocks to surge in after-hours trading. The court’s ruling halts what Trump referred to as “Liberation Day” tariffs, a cornerstone of his economic strategy aimed at punishing foreign competitors and revitalizing American manufacturing.

The implications are monumental. Not only does this ruling put Trump’s aggressive trade policies on ice, but it also raises fundamental questions about presidential power. The court emphasized that tariff authority lies primarily with Congress, challenging Trump’s long-held belief that he could operate unilaterally during a declared emergency. The ruling serves as a stark reminder that even the President is not above the law.

As the White House scrambles to respond, officials are already plotting an appeal to the Federal Circuit Court. However, the path forward remains uncertain, and businesses across the nation are left in limbo, grappling with the fallout of these now-suspended tariffs.

This unexpected judicial intervention has not only halted Trump’s trade war but also sparked a global reevaluation of economic strategies, with foreign nations now reconsidering their positions in ongoing negotiations. The stakes are high, as billions in tariff revenues hang in the balance, potentially leading to a historic courtroom battle over refunds and damages.

With Trump’s image as a decisive leader now under siege, the world is watching closely. This legal blow is more than just a setback; it could redefine how power is wielded in the Oval Office and reshape the future of U.S. trade policy. The courtroom may have just become the most critical battleground in Trump’s presidency.