President Donald Trump claimed losing legal challenges to his sweeping tariffs would lead to the “economic ruination” of America after federal courts blocked his emergency trade powers while an appeals court provided temporary relief.

What Happened: Trump warned on Truth Social Sunday that adverse court rulings “would allow other Countries to hold our Nation hostage with their anti-American Tariffs,” following the U.S. Court of International Trade’s unanimous decision blocking emergency import taxes.

The U.S. Court of International Trade ruled unanimously to block Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs, with the three-judge panel stating Trump “does not have unbounded authority” to impose the levies. Judges appointed by Trump, Barack Obama, and Ronald Reagan said the administration overstepped constitutional limits.

Hours later, U.S. District Judge Rudolph Contreras issued a separate ruling blocking emergency tariff powers, writing in a 33-page document that IEEPA “does not grant Trump the authority to impose or adjust tariffs without approval from Congress.”

However, the U.S. Court of Appeals for the Federal Circuit granted a temporary stay on Thursday, delaying the lower court’s ruling. Trump administration lawyers have until June 9 to file their response, while reciprocal tariffs announced April 2 remain in legal limbo.

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Why It Matters: The blocked tariffs include 10% across-the-board duties, 20% on Chinese imports, and 25% on non-USMCA goods from Canada and Mexico, potentially generating $200 billion annually. Goldman Sachs analysts noted Trump could reimpose similar tariffs “within days” using Section 122 trade law, which allows 15% tariffs for 150 days without congressional approval.

The S&P 500 rose 0.6% Thursday following the court decision, while import-dependent sectors rallied on relief from “potentially crippling new costs,” according to Cato Institute economist Scott Lincicome. The original tariff announcement in April triggered a $5 trillion market capitalization loss over two days.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.