A U.S. federal court blocked President Donald Trump’s “Liberation Day” tariffs that slapped steep hikes on goods from dozens of foreign countries.

The New York-based Court of International Trade ruled on Wednesday that the president overstepped his authority in issuing the wide-ranging tariffs under emergency authority. The court said that the Constitution gives Congress the authority to regulate commerce with foreign countries, not the president.

The court effectively dissolved all tariffs Trump put in place using the International Emergency Economic Powers Act, a 1977 law that had never been used to implement tariffs until Trump.

“The question in the two cases before the court is whether the International Emergency Economic Powers Act of 1977 (‘IEEPA’) delegates these powers to the President in the form of authority to impose unlimited tariffs on goods from nearly every country in the world,” the court wrote. “The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder.”

A three-judge panel issued the ruling based on two separate lawsuits – one brought by a group of businesses and the other filed on behalf of a dozen states.

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“Because of the Constitution’s express allocation of the tariff power to Congress … we do not read IEEPA to delegate an unbounded tariff authority to the President. We instead read IEEPA’s provisions to impose meaningful limits on any such authority it confers,” the panel wrote. “The Worldwide and Retaliatory Tariffs lack any identifiable limits.”

The judges also said that there is no recognizable emergency to justify the use of the IEEPA to issue sweeping tariffs.

“The challenged Tariff Orders will be vacated and their operation permanently enjoined,” the judges wrote.

The order strikes a blow to what had been one of the key pillars of Trump’s economic policy. The Trump administration has alternatively defended tariffs as a way to rebuild U.S. manufacturing and also to pressure foreign countries into cutting better, more open trade agreements. Trump has also used tariffs to force other concessions on issues such as immigration and drug enforcement.

The White House plans to send its first rescissions package of the year to the Congress next week, President Donald Trump’s budget chief announced on Wednesday, aiming to gut programs that Republicans view as being wasteful and partisan.

Russ Vought, the director of the Office of Management and Budget (OMB), said during an interview on Fox Business that the request to claw back funds appropriated by Congress will be delivered to the House on Monday or Tuesday, whenever the lower chamber is back in session.

The package will focus on removing “waste and garbage” for the U.S. Agency for International Development (USAID) and foreign aid, Vought told host Larry Kudlow.

Vought noted the package will also target NPR and the Corporation for Public Broadcasting (CBP). NPR just sued Trump over his executive order for ending “taxpayer subsidization” of outlets presenting “biased and partisan” news coverage. In particular, the directive seeks to end funds to NPR and PBS through the Corporation for Public Broadcasting (CBP).

🚨 @WHOMB Director @RussVought47 confirms that President Trump’s first rescissions package — clawing back wasteful spending in USAID, foreign aid, the Corporation for Public Broadcasting, and NPR — will be sent to Congress next week. pic.twitter.com/wBZp1lciat

— Rapid Response 47 (@RapidResponse47) May 28, 2025

Axios reported that the rescissions package is expected to cover $9.4 billion and, once delivered, lawmakers will have 45 days to approve it. Vought noted how the measure can be passed by the House and Senate with a simple majority, meaning the filibuster will not be in play.

“We’ve had good conversations to make sure they knew it was coming,” Vought said. “They had some input as to some of the changes that could be made to make it something that could pass the House. And we’re excited for that to occur next week.”

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Speaker Mike Johnson (R-LA) has listed rescissions as being one of two actions the House will take based on findings from the Department of Government Efficiency (DOGE) initiative, led by Elon Musk, in addition to using the appropriations process to “swiftly implement” Trump’s proposed 2026 budget.

“When the White House sends its rescissions package to the House, we will act quickly by passing legislation to codify the cuts,” Johnson said in a Wednesday post on X.

During his appearance on Fox Business, Vought also defended the version of Trump’s “One Big, Beautiful Bill” narrowly passed by the House last week after Musk warned it “undermines” DOGE’s cost-cutting efforts because it risks further increasing the federal deficit, which has already surpassed $1 trillion in recent years.

“We have been in the process of getting the most important priority done, and that is the ‘One Big Beautiful Bill’ … we are in the business of actually passing a law,” Vought said. “It has $1.6 trillion in actual, mandatory savers for the first time ever.”