29 May 2025 – On Wednesday, a federal court in the US state of New York declared the US government’s Liberation Day tariffs imposed on 2 April to be unlawful. However, Section 232 tariffs on steel and aluminium remain in force. Base metals on the LME reacted to the court ruling with gains.
US federal court declares Liberation Day tariffs unlawful
The Liberation Day tariffs imposed by US President Donald Trump on 2 April 2025 on almost all imports into the United States were ruled unlawful on Wednesday by a US federal court in New York State. The US government has already filed an appeal against the ruling.
The three federal judges ruled that the president had exceeded his powers by imposing tariffs on nearly all countries and that the right to levy taxes lies exclusively with the US Congress.
Section 232 tariffs on steel and aluminium remain in force
The court ruling does not affect Section 232 tariffs on steel and aluminium, among other things, as these were introduced on a different legal basis.
Due to the government’s appeal against the ruling, a final decision on the US Liberation Day tariffs is still pending. It is likely that the legal dispute will be taken to the highest courts in the American jurisdiction.
However, international markets reacted very positively to the New York judges’ decision immediately after the ruling was announced, and US stock market futures also rose by up to 2.4% in some cases.
Seizing the momentum: an opportunity for Europe to find solutions on an equal footing
It is to be feared that those responsible in the European Union will use the court ruling to once again sit back and wait idly.
Yet now would be the perfect time to use the momentum of this ruling to reach a lasting and mutually beneficial agreement with the United States in the long-running dispute over tariffs on both sides of the Atlantic. Until now, the European side in particular has repeatedly postponed, suspended and threatened new measures instead of placing the close trade relations on a long-term, sustainable footing.
LME base metals react with gains
Base metals on the London Metal Exchange (LME) reacted to the US tariff ruling with gains. Copper (+0.6%), aluminium (+0.5%), lead (+0.3%), zinc (+1.0%) and nickel (+0.9%) were positive at the start of trading.
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