The Manhattan-based US Court of International Trade ruled yesterday that President Trump’s reciprocal tariffs against most nations must be blocked and cannot be modified. 

This ruling came from a panel of three federal judges, who determined that the president exceeded his authority when he bypassed Congress and used the International Emergency Economic Powers Act (IEEPA) to impose universal duties on imported goods. The judges also separately noted that the 20% fentanyl levies against Canada, Mexico and China fail to address any drug-related issues. 

The Trump administration was given 10 days to issue orders that reflect the new ruling, but instead has promptly filed an appeal with the US Court of Appeals for the Federal Circuit questioning the trade court’s authority. If challenged again, the case will make its way up to the US Supreme Court for a final verdict.

The Justice Department claims that the ruling should be dismissed as the plaintiffs in the case, which include several small businesses and toycos, have yet to be harmed or incur any additional payments from the tariffs. It also says that only Congress has the power to challenge a national emergency declared by the president using the IEEPA. 

Illinois-based toy manufacturers Learning Resources and hand2mind were among the first companies to challenge Trump’s reciprocal tariffs last month. Their 37-page suit claimed that the US government irreparably harmed their ability to sell educational toys to retailers and schools at an affordable cost when it imposed 145% levies against China, and also that this move was part of a larger Executive Branch power-grab.