On May 29, 2025, the U.S. Court of International Trade issued a landmark ruling, declaring that former President Trump’s high-tariff measures implemented this April “exceeded presidential authority,” and officially invalidated several key tariffs. The decision had an immediate impact on global markets, with stock indices surging and Bitcoin experiencing short-term volatility.
Court Ruling Declares Tariffs Unconstitutional
The ruling was made by a three-judge federal panel, which found that Trump’s invocation of the International Emergency Economic Powers Act (IEEPA) to impose the tariffs was unconstitutional. The court stated that while the IEEPA grants the president powers to regulate international trade in response to external threats, it does not authorize unlimited tariff imposition. The panel emphasized:
“Any interpretation of the statute that allows unchecked expansion of authority is incompatible with the spirit of the Constitution.”
Overturned Tariffs and Legal Challenges
The overturned measures include a 20% tariff on Chinese goods, 25% on Canadian and Mexican imports, and a blanket 10% base tariff rate. These tariffs had drawn widespread global attention and triggered protests and retaliatory actions from multiple countries.
The decision responded to two lawsuits: one filed by a group of American small businesses, including wine importers, and another jointly filed by several state governments representing the broader interests of small businesses and consumers.
Market Response and Broader Implications
Markets reacted swiftly and sharply. Following the announcement, futures for all three major U.S. stock indices rose significantly. Dow Jones futures jumped over 500 points, while S&P 500 and Nasdaq futures gained 1.7% and nearly 2%, respectively.
The cryptocurrency market showed mixed performance. After reaching a historic high above $110,000 last week, Bitcoin slightly retreated on Wednesday to around $110,800.
Analysts See a Vote of Confidence in Legal Institutions
Kadan Stadelmann, Chief Technology Officer at the Komodo platform, stated that investors generally viewed the court ruling positively, seeing it as a sign of renewed confidence in the rule of law and institutional checks and balances. He added:
“Bitcoin’s pullback appears to be a technical correction within an upward trend, rather than a reversal.”
Trump had previously adjusted the timing of certain tariff measures, including delaying punitive duties on EU goods—moves that had temporarily boosted Bitcoin and other major crypto assets. With the court now clearly rejecting the legality of broad-based tariff hikes, Trump’s stance on trade issues is likely to face new challenges.
According to the court’s directive, the federal government must complete the rollback of the related executive orders within ten business days. Trump has already filed an appeal, and the case will be reviewed by the U.S. Court of Appeals for the Federal Circuit.