Trump 'Liberation Day' tariffs blocked by U.S. trade court

The so-called reciprocal tariffs imposed on "Liberation Day" and the trafficking-related tariffs have all been ruled an illegal overreach by the President and have been blocked by a U.S. trade court.

There has been a lot of volatility with Apple, big tech, and United States businesses since the April 2 "Liberation Day" tariffs imposed by President Trump. While many of the obscenely high tariffs have been lowered since, a global baseline of a still-high 10% has been in place.

According to a report from Reuters, a U.S. trade court has ruled that President Trump overstepped his authority. While it doesn't pass judgement on whether the tariffs would work as intended, the court does say they are not allowed according to federal law.

The Trump administration has already filed an appeal. The ruling provides a permanent injunction against enforcing the tariffs.

There are still some tariffs left in place by the ruling that didn't rely on the Emergency Economic Powers Act, like on automotive imports. But every tariff related to Canada and Mexico, referred to as trafficking tariffs, and all global so-called "reciprocal" tariffs, are no longer enforceable.

Given all of the changes, reversals, and exemptions, it is difficult to determine exactly how this might affect a company like Apple. If the tariffs are indeed removed, it'll mean Apple's $900 million hit to its bottom line might be lessened in the short term.

It may also be good news for Apple and other smartphone companies, as the ruling likely means President Trump can't impose a 25% tariff on smartphone imports. The ruling could collapse the administration's entire, if poorly executed, plan to force companies to bring manufacturing to the United States.

If the tariff policies are truly gone, it will mean a sigh of relief for Apple and its fans. The iPhone 17 lineup may not need to bear the weight of a price increase after all.