Federal Judges Rule Against Trump’s ‘Liberation Day’ Tariffs in Arizona Showdown

Three federal judges in the U.S. Court of International Trade in New York City have overturned new tariffs on nearly all imports into the United States, effective April. The ruling, issued on Wednesday, favored Arizona and 11 other states, along with various businesses involved in a companion lawsuit, against former President Trump and several federal agencies.

The case, State of Oregon et al v. Donald J. Trump et al, filed on April 23, contended that Trump misapplied a 1977 law to justify the tariffs, inaccurately claiming there was an “unusual and extraordinary threat” to the nation. The plaintiffs argued the tariffs would significantly harm state economies and disrupt constitutional governance.

The judges concluded that the International Emergency Economic Powers Act (IEEPA) “does not authorize worldwide and retaliatory tariffs,” emphasizing that tariff authority is constitutionally allocated to Congress, not the President. This decision directly challenged Trump’s assertions regarding the need for such financial measures due to threats like fentanyl trafficking and trade deficits.

Attorneys representing Trump indicated a potential appeal to the U.S. Supreme Court following this latest ruling. At a May 21 hearing, they defended the use of the Emergency Economic Powers Act, which grants broad authority on financial regulations during emergencies. However, the state attorneys general maintained that only Congress holds the power to dictate tariff policy.

The lawsuit specifically targeted four executive orders issued by Trump that implemented fluctuating tariffs on imports from China, Mexico, and Canada, as well as a 10% retaliatory tariff on most other goods. The Court’s ruling effectively halts these tariffs and additional ones planned to take effect by July 9.

Arizona Attorney General Kris Mayes hailed the decision as a significant victory for the state’s economic stability. “I spearheaded this lawsuit because President Trump’s tariffs—a tax on Arizona families and businesses—were poised to devastate our state’s economy,” she stated. “I will continue to fight for affordability for Arizonans and against President Trump’s illegal abuses of power.”