A federal court on Wednesday ruled President Trump does not have the authority under economic emergency legislation to impose sweeping global tariffs.
Why it matters: The U.S. Court of International Trade's ruling could bring the administration's trade war to a screeching halt.
By blocking entirely most categories of tariffs, the court effectively wiped out most of the regime Trump put in place since taking office.
Driving the news: The court, ruling in two separate cases, issued a summary judgment throwing out all the tariffs Trump imposed under the International Emergency Economic Powers Act, or IEEPA.
Trump used the 1977 law, which had never before been invoked in a tariff situation, to unilaterally impose sweeping trade levies worldwide.
The two groups of plaintiffs — businesses and states — sued on the grounds that the president's orders violated the Constitution's grant of authority over import duties to Congress.