11:01 AM EDT, 05/29/2025 (MT Newswires) -- A US federal court ruling challenging a series of tariffs imposed by President Donald Trump likely weakens Washington's position in trade talks, but the leader has other tools at hand to push through his tariffs agenda, analysts said Thursday.

The Court of International Trade on Wednesday ruled that Trump overstepped his authority by imposing duties under the International Emergency Economic Powers Act. The Trump administration has appealed the ruling, according to media reports.

The court decision impacts fentanyl tariffs imposed on China, Canada and Mexico, along with reciprocal tariffs that have been suspended until July 9, TD Economics said in a note. However, sectoral tariffs, including metals and auto duties, remain unaffected.

"At the very least, yesterday's announcement weakens the US position in trade talks that were underway with more than a dozen nations, most notably the (Europe Union) and China," TD Senior Economist Thomas Feltmate wrote.

As countries wait out the process unfolding in US courts, they may be less motivated to negotiate trade deals with the Trump administration, Scotiabank said.

But removing the IEEPA -- even temporarily -- from the president's toolkit doesn't mean the ongoing trade war is over. The focus will instead shift toward tariffs under sections 232 and 301 to target sectors including pharmaceutical and semiconductor, though decisions taken under these statutes can take time to implement, ING Bank said, referring to parts of the US government's trade laws.

"Removing IEEPA, at least temporarily, from the authority that the president can use to impose universal tariffs or for tariffs which may not remedy the emergency, might potentially slow the administration, but equally may not stop new tariff announcements or the exploration of other authorities," UBS Securities economists including Jonathan Pingle said.

The administration also retains the option of using sections 122 and 338, ING said. The sections are also part of the government's trade laws.

"This ruling marks a significant legal and political challenge to the use of emergency powers in trade policy and adds another layer of uncertainty to the whole US trade policy," according to the ING note. "We expect the pace of sector-based tariffs to accelerate, with additional measures likely to be announced soon."