The US Trade Court in New York has declared most of the tariffs imposed by former President Donald Trump illegal. The court unanimously ruled that Trump exceeded his authority in imposing these tariffs, particularly by using an emergency law to justify a comprehensive tariff policy that it does not allow. The decision affects nearly all of Trump’s global tariffs, including those against Switzerland.
The Consequences of the Ruling
The consequence of the ruling is an order for the US government to lift these tariffs within ten days and permanently prohibit their application. However, the government immediately announced its intention to appeal the ruling. The three-member panel of judges consisted of judges appointed by various presidents – including one appointed by Trump himself – which lends additional independence to the decision.
Market Reactions
This court ruling immediately led to positive reactions in the financial markets: US futures rose, as did US yields and the value of the dollar. This reflects the market’s confidence in a possible easing of international trade tensions as a result of the ruling.
Widespread Implications
- For international trade relations, this signifies a potential easing of trade tensions between the US and other countries.
- For businesses – especially importers from countries like Switzerland – the removal of these punitive tariffs could lower costs and ease supply chains.
- Politically, the ruling represents a setback for Trump’s trade policy agenda.
Not all tariffs are affected; it primarily concerns those measures imposed under emergency laws. Nonetheless, this is a significant step towards limiting executive power in trade matters in the US.
In summary, the US Trade Court’s ruling in May 2025 declared a large part of Trump’s tariff policy inadmissible, triggering immediate positive market reactions and likely to have long-term implications for international trade relations as well as affected businesses.