Trump's sweeping global tariffs blocked by federal court

A federal court on Wednesday ruled President Trump does not have the authority under economic emergency legislation to impose sweeping global tariffs.Why it matters: The U.S. Court of International Trade's ruling could bring the administration's trade war to a screeching halt.By blocking entirely most categories of tariffs, the court effectively wiped out most of the regime Trump put in place since taking office. Driving the news: The court, ruling in two separate cases, issued a summary judgment throwing out all the tariffs Trump imposed under the International Emergency Economic Powers Act, or IEEPA.Trump used the 1977 law, which had never before been invoked in a tariff situation, to unilaterally impose sweeping trade levies worldwide. The two groups of plaintiffs — businesses and states — sued on the grounds that the president's orders violated the Constitution's grant of authority over import duties to Congress.What they're saying: "The question in the two cases before the court is whether the International Emergency Economic Powers Act of 1977 ("IEEPA") delegates these powers to the President in the form of authority to impose unlimited tariffs on goods from nearly every country in the world," the three-judge panel wrote."The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder."For the record: The court, which gets relatively little attention compared to most other federal courts, has jurisdiction over civil cases arising from trade disputes.The three judges who heard the case were Reagan, Obama and Trump appointees.The White House did not immediately respond to Axios' request for comment on Wednesday evening. The intrigue: The court skipped over the plaintiffs' motions for an injunction and went directly to issuing a judgment, saying IEEPA did not authorize any of the "Worldwide, Retaliatory or Trafficking" orders."The challenged Tariff Orders will be vacated and their operation permanently enjoined," the court wrote.What to watch: With tariffed goods arriving at U.S. ports every day, the confusion over what's in force and what to charge could throw imports into chaos.Markets, and businesses, will likely be paying rapt attention in coming days to how the administration responds and whether higher courts intervene. Editor's note: This a breaking news story. Please check back for updates.

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