In a seismic ruling that has sent shockwaves through Washington, a federal court declared on May 28, 2025, that former President Donald Trump’s “Liberation Day” tariffs are unconstitutional, asserting he exceeded his executive authority in imposing them. The decision, hailed as a major victory for the economy, effectively dismantles the majority of the tariffs Trump enacted during his second term, aimed at reshaping global trade. The controversial tariffs, which targeted imports from countries like China and the European Union, were a cornerstone of Trump’s economic agenda, designed to boost domestic manufacturing but criticized for raising consumer prices and straining international relations.
The lawsuit, brought by a coalition of businesses, trade groups, and several state governments, argued that Trump’s tariffs violated constitutional checks on executive power. The court agreed, finding that the “Liberation Day” measures, rolled out with fanfare in early 2025, lacked congressional approval and overstepped the president’s authority under existing trade laws. Legal scholars note that the ruling reinforces the balance of power, limiting the ability of future administrations to unilaterally impose sweeping economic policies. The decision also voids tariffs that added an estimated $80 billion annually to consumer costs, offering immediate relief to industries reliant on imports.
Trump, responding on X, called the ruling “a betrayal of American workers” and vowed to appeal, claiming the tariffs protected jobs from “unfair foreign competition.” His supporters, rallying under hashtags like #SaveOurJobs, argue the tariffs were critical to reviving industries hollowed out by globalization. Critics, however, point to studies showing the tariffs increased inflation by 0.4% and cost consumers $200 billion in higher prices since their inception. The U.S. Chamber of Commerce praised the ruling, stating it “restores economic sanity and protects businesses from arbitrary burdens.”
The economic fallout is already evident. Stock markets surged, with the Dow climbing 2.3% on news of the tariff rollback, reflecting investor optimism about lower costs for goods ranging from electronics to clothing. However, some manufacturing sectors, particularly steel and aluminum, brace for challenges as cheaper imports flood the market. Economists predict a mixed impact: while consumers may see price relief, job losses in protected industries could spark backlash in Rust Belt states.
The ruling also has political ramifications, weakening Trump’s economic legacy as he eyes future political moves. Opponents, including Democratic lawmakers, celebrated the decision as a check on executive overreach, while some Republicans fear it could embolden trade partners like China. The case now heads to the appellate court, with a potential Supreme Court showdown looming in 2026. For now, the nation grapples with the implications of a decision that reshapes trade policy, reignites debates over economic nationalism, and signals a new chapter in the fight over executive power. The world watches as the U.S. navigates this pivotal moment.
