A federal court in New York has ruled against President Donald Trump’s sweeping “Liberation Day” tariffs, effectively declaring them unconstitutional.

The Court of International Trade determined that Trump exceeded his executive authority by bypassing Congress, which holds exclusive power over international commerce.

The tariffs, announced April 2, ranged from 10% to 54% depending on the country. While most remain under a 90-day suspension at a base 10%, the court found the emergency-powers statute used to justify the tariffs inappropriate.

Additionally, the court invalidated another set of tariffs targeting China, Mexico, and Canada, imposed since Trump’s return to office. However, product-specific tariffs on cars, steel, and aluminum—enforced under a separate law—were not affected.

The ruling casts uncertainty on U.S. trade relations, with potential implications for the recently signed U.S.-UK trade deal and other pending agreements. The court ordered the administration to begin lifting the tariffs within 10 days, but Trump’s team has already filed an appeal.

Despite the ruling, tariffs will remain in effect during the appeals process. If the decision stands, businesses may be eligible for refunds—with interest—on previously paid tariffs, including the 10% general rate and the steep 145% on Chinese goods. The legal battle now shifts to higher courts, where Trump may find more favorable ground.

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