Court of International Trade cited Congress’s exclusive authority over taxes and commerce on 28 May 2025. On 29 May 2025, the US Court of Appeals for the Federal Circuit issued an administrative stay while it reviews an appeal from the Trump Administration. 

The United States Court of International Trade ruled on 28 May 2025 in cases brought by small businesses and several US states, including Oregon, against the Trump Administration’s tariffs enacted under the International Emergency Economic Powers Act of 1977 (IEEPA).

The Court notes that the Constitution gives Congress the exclusive powers to “lay and collect taxes, duties, imposts and excises” and “regulate Commerce with foreign Nations.” The question is whether the IEEPA allows the President to impose unlimited tariffs on goods from almost every country.

The Court ruled no and set aside the tariffs. However, on Thursday, 29 May 2025, the US Court of Appeals for the Federal Circuit issued an administrative stay while it reviews an appeal from the Trump Administration.

Hence, the tariffs remain in effect for the time being.

On 2 April 2025, US President Donald Trump signed an executive order implementing a 10% baseline tariff on imports from all countries.  The move introduced reciprocal tariffs on imports from nations with the largest US trade deficits.

Since then, the White House has paused most of Trump’s tariffs, which were introduced in early April. However, Trump kept a 10% tax on most imports and later reduced his 145% tax on Chinese goods to 30%.

Global stock markets rise, dollar falls amid tariff court dispute

Global stocks climbed while the US dollar weakened on 29 May 2025, after the US Court of International Trade ruled that Trump had overstepped his authority by imposing his new import tariffs.

Global financial markets closely watched as the legal battle over Trump’s tariffs unfolded, with the administration appealing and an appeals court temporarily reinstating the tariffs.

On Wall Street, all three indexes rose after losses in the previous session following the court decision.

Nvidia rose 3% after beating earnings expectations on Wednesday. The Dow Jones (DJI) added 0.28% to 42,215.73, the S&P 500 (SPX) gained 0.40% to 5,912.17, and the Nasdaq (IXIC) climbed 0.39% to 19,175.87.

Europe’s STOXX 600 (STOXX) fell 0.19% after earlier gains, while MSCI’s Asia-Pacific index outside Japan (MIAPJ0000PUS) closed up 0.77% overnight.