US Court Rules Trump Tariffs “Invalid”: Elon Musk Ends White House Role

Thursday, 29/05/2025 | 04:40 GMT by Arnab Shome
  • The court order will scrap the entire executive order on tariffs issued by US President Trump.
  • Elon Musk’s exit was expected as his car company struggles with sales and he disagrees with Trump’s policies.
tariffs

The US Court of International Trade has ruled that the tariffs imposed by the Donald Trump Administration are “invalid, as contrary to law”, effectively blocking their implementation.

“Liberation” Ended

On the so-called “Liberation Day” of 2 April, US President Donald Trump imposed a baseline tariff of 10 per cent on all US imports, along with additional country-specific tariffs. Some Southeast Asian countries were among the hardest hit, with tariffs reaching 49 per cent and 46 per cent on goods from Cambodia and Vietnam, respectively.

The tariffs triggered a trade war, most notably with China. After China imposed reciprocal tariffs on the US, Trump increased tariffs against the country to an effective 245 per cent. However, the Trump Administration is now negotiating with most countries and blocs and has paused the implementation of the tariffs.

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“We do not read [the International Emergency Economic Powers Act] to delegate an unbounded tariff authority to the President,” the judges wrote in the latest order blocking the tariffs altogether. “We instead read IEEPA’s provisions to impose meaningful limits on any such authority it confers.”

“The worldwide and retaliatory tariffs lack any identifiable limits,” they added, noting that IEEPA’s limited authorities may be exercised only to “deal with an unusual and extraordinary threat with respect to which a national emergency has been declared … and may not be exercised for any other purpose.”

The judges ruled that although the International Emergency Economic Powers Act grants the US President significant authority to regulate international trade during national emergencies, that authority is not unlimited.

The White House is likely to appeal the court’s decision, having already vowed to do so even before the ruling was issued.

Musk Exits

Meanwhile, billionaire Elon Musk has stepped down from his role at the White House, announcing his resignation publicly on X (formerly Twitter).

“As my scheduled time as a Special Government Employee comes to an end,” he wrote. “The DOGE mission will only strengthen over time as it becomes a way of life throughout the government.”

Musk had actively campaigned for Trump during his election rallies and was later appointed to a newly formed department—the Department of Government Efficiency (DOGE)—which aimed to cut down government spending.

However, Musk became critical of several Trump policies, including those related to tariffs and immigration.

The US Court of International Trade has ruled that the tariffs imposed by the Donald Trump Administration are “invalid, as contrary to law”, effectively blocking their implementation.

“Liberation” Ended

On the so-called “Liberation Day” of 2 April, US President Donald Trump imposed a baseline tariff of 10 per cent on all US imports, along with additional country-specific tariffs. Some Southeast Asian countries were among the hardest hit, with tariffs reaching 49 per cent and 46 per cent on goods from Cambodia and Vietnam, respectively.

The tariffs triggered a trade war, most notably with China. After China imposed reciprocal tariffs on the US, Trump increased tariffs against the country to an effective 245 per cent. However, the Trump Administration is now negotiating with most countries and blocs and has paused the implementation of the tariffs.

You may also like: Tariff Volatility Pushes FX Trading - Firms See “Strongest Days”

“We do not read [the International Emergency Economic Powers Act] to delegate an unbounded tariff authority to the President,” the judges wrote in the latest order blocking the tariffs altogether. “We instead read IEEPA’s provisions to impose meaningful limits on any such authority it confers.”

“The worldwide and retaliatory tariffs lack any identifiable limits,” they added, noting that IEEPA’s limited authorities may be exercised only to “deal with an unusual and extraordinary threat with respect to which a national emergency has been declared … and may not be exercised for any other purpose.”

The judges ruled that although the International Emergency Economic Powers Act grants the US President significant authority to regulate international trade during national emergencies, that authority is not unlimited.

The White House is likely to appeal the court’s decision, having already vowed to do so even before the ruling was issued.

Musk Exits

Meanwhile, billionaire Elon Musk has stepped down from his role at the White House, announcing his resignation publicly on X (formerly Twitter).

“As my scheduled time as a Special Government Employee comes to an end,” he wrote. “The DOGE mission will only strengthen over time as it becomes a way of life throughout the government.”

Musk had actively campaigned for Trump during his election rallies and was later appointed to a newly formed department—the Department of Government Efficiency (DOGE)—which aimed to cut down government spending.

However, Musk became critical of several Trump policies, including those related to tariffs and immigration.

About the Author: Arnab Shome
Arnab Shome
  • 7213 Articles
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 7213 Articles
  • 130 Followers

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