A federal judge on Thursday issued a preliminary injunction and ruled President Trump’s tariffs are unlawful under the International Emergency Economic Powers Act (IEEPA).
US District Judge Rudolph Contreras, an Obama appointee said Trump’s tariffs are “unlawful.”
Contreras said his preliminary injunction only applies to the two companies that filed suit, however, his ruling could open the door to more widespread injunctions.
BREAKING: Judge Contreras has ruled Trump’s tariffs are unlawful. This is a *separate* injunction by a federal judge in D.C., unrelated to the block issued yesterday by judges on the federal trade court. https://t.co/eimjAMgcVZ pic.twitter.com/HLEbEUIeLJ
— Kyle Cheney (@kyledcheney) May 29, 2025
Contreras’ injunction is separate from the permanent injunction issued by a three-judge panel on the Court of International Trade.
The Court of International Trade in New York on Wednesday said President Trump exceeded his authority to impose tariffs under the International Emergency Economic Powers Act of 1977 (IEEPA).
“The order halts Trump’s 30% tariffs on China, his 25% tariffs on some goods imported from Mexico and Canada, and the 10% universal tariffs on most goods coming into the United States. It does not, however, affect the 25% tariffs on autos, auto parts, steel or aluminum, which were subject to Section 232 of the Trade Expansion Act – a different law than the one Trump cited for his broader trade actions,” CNN reported.
Last week US District Court Judge T. Kent Wetherell suggested President Trump had the authority to impose tariffs under IEEPA, a ruling from the 1970s, but did not issue an order.
“According to the judge, the International Emergency Economic Powers Act of 1977 gives Trump the authority to set tariffs for reasons other than raising revenue. Wetherell wrote that Trump’s justification for the tariffs — both stemming the flow of illicit drugs into the country and resolving a trade imbalance — is sufficient to satisfy the terms set by Congress,” ABC News reported last week.
However, rather than issuing an order, Judge Wetherell punted the case from a federal court in Southern Florida to the Court of International Trade.
The judge transferred one of the lawsuits to the federal court in New York.
On Wednesday, a three-judge panel at the US Court of International Trade ruled President Trump exceeded his authority to unilaterally impose tariffs under IEEPA.
The three judge panel including: Gary Katzmann (Obama), Timothy Reif (Trump) and Jane Restani (Reagan).
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