A federal court in New York has blocked former President Donald Trump from enforcing the sweeping tariffs imposed under an emergency-powers statute.

The Court of International Trade, consisting of a three-judge panel, ruled that Trump exceeded his constitutional authority by attempting to bypass Congress, which holds exclusive power to regulate international commerce.

The case centered on the so-called “Liberation Day” tariffs introduced on April 2nd. These ranged from 10% to 54% depending on the country, though most nations are currently subject only to the base 10% rate due to a 90-day suspension.

The court also struck down a separate group of tariffs aimed at China, Mexico, and Canada, enacted since Trump’s return to the White House.

However, the ruling did not address product-specific tariffs on goods such as cars, steel and aluminum, which were imposed under a different legal statute.

The court gave the administration 10 days to begin unwinding the tariffs, but the Trump administration quickly filed an appeal. Some believe that Trump friendly higher courts may provide the president with a more favorable outcome.

In the meantime, the tariffs will remain in place at the border and continue to be collected.

If the court’s decision is upheld, affected businesses could be eligible for refunds—with interest—on tariffs already paid, including the 10% general rate and the now-reduced 145% on Chinese goods.

The uncertainty continues and this is one that Atlantic Pacific will be monitoring very closely during the next few days and weeks.