US Court says Trump’s recent tariffs are ‘illegal,’ halting them for now
What you need to know
- On Wednesday (May 28), U.S. Court of International Trade judges halted President Trump’s recent 10% tariffs on “virtually every U.S. trade partner.”
- The judges state that the administration’s leverage of the IEEPA shouldn’t qualify here, and that Trump has “exceeded” any rightful authority.
- Recently, Samsung was pushing to build more Galaxy S25’s while it was in the clear; however, Trump is seeking a 25% tariff on phones built outside the U.S.
The U.S. federal court has reportedly put the brakes on President Trump’s planned tariffs for several countries.
According to CBS News, several U.S. Court of International Trade judges have placed a roadblock before President Trump’s recent tariffs. Per reports, the tariffs were reportedly 10% and concerned “virtually every U.S. trade partner.”The U.S. Court said on Wednesday, May 28, that the tariffs have been considered illegal due to them “exceeding” the president’s rightful authority.
The publication cites the judges, surfacing the following statement: “The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder.”
The IEEPA, otherwise known as the International Emergency Economic Powers Act of 1977, is the primary catalyst here. The president’s administration has leaned on the IEEPA to “justify” its recent 10% tariffs on many overseas trade partners. What’s more, a White House spokesperson, Kush Desai, defended the 10% tariffs, stating the U.S. “trade deficit” with other countries has “created a national emergency that has decimated American communities.”
However, the U.S. Court claims the IEEPA’s true intention is to rectify any trade imbalances, not emergency action.
CBS News states the Trump Administration plans to appeal the court’s roadblock. The U.S. Court of International Trade judges have also blocked new tariffs against China, Mexico, and Canada.
Tariffs & The Impact
There’s been a major shift in how companies are handling their imports in the U.S. after Trump’s tariffs and trade rule changes started. As a result, Samsung, in May, started cranking up its Galaxy S25 series production in light of the tariffs. The company was reportedly seeking to crank out roughly 800,000 Galaxy S25s in May with a focus on the S25 Ultra.
Earlier this month, Samsung’s devices stood in the clear; however, that’s quickly changed as of this week.
President Trump said earlier this week that the U.S. is looking to impose a 25% tax on phones not made in the U.S. This tax will include Apple’s iPhones and Samsung’s Galaxy phones. It’s this move that has pushed reports to state Samsung isn’t interested in picking up the extra costs because of these tariffs. Instead, it seems the Korean OEM will place that extra fee on the consumer.
As a result, U.S. consumers could see a ~40% increase in Samsung’s Galaxy phones due to the tariffs.
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