Economics

Trump’s Tariff Plans Face Legal Setback Amid UK Trade Deal Hopes

A recent U.S. court ruling has dealt a significant blow to President Donald Trump’s expansive tariff agenda, casting uncertainty over the future of international trade relations, including the UK’s ongoing negotiations for a post-Brexit trade deal.

On May 28, 2025, a three-judge panel from the U.S. Court of International Trade unanimously ruled that President Trump’s sweeping tariffs, imposed under the International Emergency Economic Powers Act (IEEPA), were unconstitutional. The court determined that the IEEPA did not grant the president the authority to unilaterally impose such broad tariffs without clear congressional authorization. This decision has temporarily blocked the enforcement of the “Liberation Day” tariffs, which had targeted a range of countries, including the UK. 

The ruling has been met with mixed reactions. While many international trade partners, including the UK, view it as a positive development that could pave the way for more balanced trade agreements, the Trump administration has expressed strong disapproval. White House spokesperson Stephen Miller referred to the decision as another “judge coup,” and the administration has filed an appeal, seeking to overturn the ruling.

For the UK, the timing of the court’s decision is critical. Prime Minister Keir Starmer has been actively pursuing a trade deal with the U.S., aiming to strengthen post-Brexit economic ties. However, the imposition of tariffs had complicated these negotiations. Business Secretary Jonathan Reynolds expressed disappointment over the tariffs, emphasizing the need for a pragmatic approach and rapid negotiations to eliminate additional tariffs benefiting UK businesses. The recent court ruling offers a glimmer of hope for the UK, potentially removing a significant obstacle to finalizing a trade agreement. 

Despite the legal setback, President Trump remains committed to his protectionist trade policies. He has indicated plans to pursue alternative legal avenues to implement his tariff strategy, including invoking other legislative frameworks. This ongoing legal battle underscores the complexities and uncertainties surrounding global trade relations under the current U.S. administration.

As the situation develops, the UK government continues to monitor the legal proceedings closely, preparing to adjust its trade strategy accordingly. The outcome of this case could have far-reaching implications for international trade norms and the balance of power between the executive and legislative branches in the U.S.

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