This week, a three-judge panel of the Manhattan-based U.S. Court of International Trade ruled against reciprocal tariffs imposed by the Trump administration.

CNN reported that the ruling also prevents Trump from enforcing tariffs from earlier this year against China, Mexico, and Canada designed to combat the entry of fentanyl into the United States.

Specifically, the judges' decision ruled in favor of a permanent restraining order, halting Trump's global tariffs before “agreements” have been reached with most other trading partners. This means that most (but not all) of Trump's tariffs are put on hold.

Essentially, the Court ruled that the president lacks the authority to impose most of the tariffs that underpin his trade war.

The ruling stops the 30% tariffs on China, the 25% tariffs on some products imported from Mexico and Canada, and the 10% universal tariffs on most goods entering the United States.

However, the international news network details that it does not 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. Faced with the news, the U.S. government immediately appealed.

This is not the first time Trump's measure has been challenged in court. In mid-April, Gavin Newsom, the governor of California, filed a lawsuit on behalf of the state against the president to pause the imposed trade tariffs due to their potential economic effects.

Related article: California Governor announces lawsuit against Trump over tariffs

April 2, when it all began

Under the concept of “Liberation Day,” on that day, Trump announced the details of tariffs on imports from various trading partners.

Their implementation has four goals: stem the flow of fentanyl and illegal immigration into the United States, level the playing field with trading partners, increase government revenue, and boost domestic manufacturing.

“We've been waiting for a long time. April 2, 2025, will forever be remembered as the day American industry was reborn. The day when America's destiny was reclaimed and when we began to make America richer again,” the U.S. president said at the time.

Since the announcement, the U.S. government has held meetings with various trading partners to analyze the situation. On Sunday, May 25, it even granted the European Union an extension of the tariffs until July 9, following a call from the President of the European Commission, Ursula von der Leyen.

Another situation is the one with China, a country with which it is engaged in a tough “trade war”.