A U.S. trade court has blocked President Donald Trump’s tariffs, ruling that he exceeded his authority by unilaterally imposing duties on imports.

The Court of International Trade emphasized that only Congress has the constitutional authority to regulate foreign commerce.

The court clarified that its ruling was not based on the effectiveness of the tariffs but on legal grounds that federal law does not permit such actions.

The Trump administration swiftly responded by filing an appeal against the court’s decision.

The legal challenge was initiated by the Liberty Justice Center and 13 U.S. states, on behalf of small businesses affected by the tariffs.

These businesses, including importers of wine, educational kits, and musical instruments, argued that the tariffs would damage their operations.

White House advisor Stephen Miller criticized the ruling, calling it a sign of a “judicial coup.”

Oregon Attorney General Dan Rayfield, who led one of the lawsuits, called the tariffs reckless and praised the court for upholding the rule of law.

Trump justified the tariffs under the International Emergency Economic Powers Act, a law typically used to impose sanctions during national emergencies.

Financial markets reacted strongly to the developments, with the U.S. dollar rising against traditional safe-haven currencies like the Swiss franc and Japanese yen.