The ruling, if it stands, blows a giant hole through Trump’s strategy to use steep tariffs to wring concessions from trading partners, draw manufacturing jobs back to US shores and shrink a $1.2 trillion US goods trade deficit, which were among his key campaign promises.
Without the instant leverage provided by the tariffs of 10% to 54% that Trump declared under the International Emergency Economic Powers Act (IEEPA) – which is meant to address “unusual and extraordinary” threats during a national emergency the Trump administration would have to take a slower approach of lengthier trade investigations under other trade laws to back its tariff threats.
The ruling came in a pair of lawsuits, one filed by the nonpartisan Liberty Justice Center on behalf of five small US businesses that import goods from countries targeted by the duties and the other by 13 US states.
The companies, which range from a New York wine and spirits importer to a Virginia-based maker of educational kits and musical instruments, have said the tariffs will hurt their ability to do business.
“There is no question here of narrowly tailored relief; if the challenged Tariff Orders are unlawful as to Plaintiffs they are unlawful as to all,” the trade court wrote in its decision. At least five other legal challenges to the tariffs are pending.
Oregon Attorney General Dan Rayfield, a Democrat whose office is leading the states’ lawsuit, called Trump’s tariffs unlawful, reckless and economically devastating.
“This ruling reaffirms that our laws matter, and that trade decisions can’t be made on the president’s whim,” Rayfield said in a statement.
Trump has claimed broad authority to set tariffs under IEEPA. The law has historically been used to impose sanctions on enemies of the US or freeze their assets. Trump is the first US president to use it to impose tariffs.
The Justice Department has said the lawsuits should be dismissed because the plaintiffs have not been harmed by tariffs that they have not yet paid, and because only Congress, not private businesses, can challenge a national emergency declared by the president under IEEPA.
In imposing the tariffs in early April, Trump called the trade deficit a national emergency that justified his 10% across-the-board tariff on all imports, with higher rates for countries with which the United States has the largest trade deficits, particularly China.
Many of those country-specific tariffs were paused a week later.
The Trump administration on May 12 said it was also temporarily reducing the steepest tariffs on China while working on a longer-term trade deal. Both countries agreed to cut tariffs on each other for at least 90 days.
Israel said it had struck Houthi targets including the last remaining plane used by the group at Sanaa international airport, after the Yemeni militants launched missiles towards Israel a day earlier.
The General Director of Sanaa International Airport, Khaled al-Shaief, said in a post on his X account that the strike had completely destroyed the last of the civilian planes that Yemenia Airways was operating from the airport.
The airport is the largest in Yemen and came back into service last week after temporary repairs and runway restoration following previous Israeli strikes.It was mainly being used by UN aircraft and the plane destroyed in the latest Israeli strikes. Three other Yemenia Airways planes were destroyed in an attack earlier this month.
“This is a clear message and a direct continuation of the policy we have established: whoever fires at the State of Israel will pay a heavy price,” Israel’s defence ministry said in a statement.
The Houthis did not immediately respond to a request for comment.
Part of Iran’s “Axis of Resistance,” a regional alliance that includes Hamas in Gaza and Hezbollah in Lebanon, the Houthis control territory where about 60% of Yemen’s population resides.
Since the start of the war in Gaza in October 2023, the group has fired at Israel and at shipping in the Red Sea in what it says are acts of solidarity with the Palestinians.
Most of the dozens of missiles and drones fired towards Israel have been intercepted or fallen short. Israel has carried out a series of retaliatory strikes.
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The US also launched intensified strikes against the Houthis this year, before halting the campaign after the Houthis agreed to stop attacks on US ships.
In a statement on Wednesday, Israeli Prime Minister Benjamin Netanyahu said that any harm directed at Israel will be met with greater force.
“But, as I have said more than once, the Houthis are only the symptom. The main driving force behind them is Iran, which is responsible for the aggression emanating from Yemen,” Netanyahu said.
