#TrumpTariffs On May 29,2025, the United States Court of International Trade made a landmark ruling declaring that President Donald Trump’s 'Liberation Day' tariff policy, launched on April 2, was invalid, citing that the president's invocation of the International Emergency Economic Powers Act to impose comprehensive tariffs based on trade deficits was an overreach of authority. This ruling not only poses a significant judicial challenge to Trump's trade policy during his second term but also caused tremors in the global financial markets, with bond yields fluctuating and capital flows changing.

Domestically, five U.S. small businesses reliant on imported goods, supported by the nonpartisan Liberty Justice Center, filed a lawsuit in the U.S. Court of International Trade challenging the legality of the tariffs. These businesses stated that high tariffs significantly increased import costs, weakened their competitiveness, and even threatened their survival. Additionally, a coalition of attorneys general from 13 states has also questioned the tariff policy, arguing that it has caused 'devastating damage' to local economies. Internationally, China has imposed retaliatory tariffs of 125% on U.S. goods and restricted rare earth exports; Canada and Mexico have threatened countermeasures, further escalating the risk of a global trade war.