The U.S. Court of International Trade has dealt a significant blow to former President Donald Trump’s sweeping global tariffs by ruling that he exceeded his authority in imposing them unilaterally. This landmark decision, issued on April 2, 2025, has stirred fresh questions about the future of the U.K.’s trade deal with the U.S., particularly concerning tariffs on key exports such as automobiles, steel, and aluminum.
Court Ruling Halts Majority of Trump’s Tariffs
The court blocked the majority of the 10% “reciprocal” tariffs that Trump imposed globally, including those affecting U.K. exports like salmon and whisky. The ruling determined that Trump overstepped his powers under the 1977 International Emergency Economic Powers Act (IEEPA), which he cited to justify the tariffs as a national emergency measure.
However, tariffs on steel, aluminum, and certain Chinese products remain intact. Notably, the U.K. still faces a 27.5% tariff on automobiles and 25% tariffs on steel and aluminum, which were not affected by the court’s decision.
Impact on U.K.-U.S. Trade Deal
The U.S.-U.K. trade deal, announced in early May 2025, includes provisions to reduce the automobile tariff from 27.5% to 10% for the first 100,000 vehicles imported annually from the U.K. Additional vehicles beyond this threshold would still face a 25% tariff. Negotiations are also ongoing to find alternative arrangements for steel and aluminum tariffs.
The court ruling complicates the implementation of this deal. While it prevents Trump from enforcing a blanket 10% tariff on all imports, it does not immediately alter the higher tariffs on autos, steel, and aluminum that are crucial to the U.K. economy. This creates uncertainty about how quickly and fully the U.K. will benefit from tariff reductions under the new trade agreement.
Trade Figures Highlight Stakes
Trade between the U.S. and U.K. is substantial, with total goods trade estimated at $148 billion in 2024. In 2023, the U.K. exported $80 billion worth of goods to the U.S., primarily machinery, transport equipment, and chemicals. Conversely, the U.S. exported $77.2 billion to the U.K., led by machinery, transport equipment, and fuel.
Agricultural tariffs remain a sticking point. The U.K. imposes an average agricultural tariff of 9.2%, with some meat, poultry, and dairy products facing tariffs exceeding 125%. The U.S. had a 5% average agricultural tariff before the April 2025 tariffs. These high tariffs pose challenges for U.S. exporters seeking greater access to the U.K. market.
Reactions from Washington and London
The court ruling was welcomed by critics of Trump’s tariff strategy, who viewed it as an overreach of executive power. U.S. stock markets responded positively, rising sharply after the decision.
The Trump administration, however, swiftly filed a notice of appeal, signaling its intention to challenge the ruling in the Supreme Court. White House spokesperson Kush Desai defended the tariffs as essential to addressing the U.S. trade deficit and national security, criticizing the judiciary for interfering with executive decisions.
Trump himself dismissed the backlash, characterizing his tariff policy as “negotiation” and rejecting criticism that he “chickened out” on trade enforcement. His deputy chief of staff, Stephen Miller, condemned the court ruling on social media as a “judicial coup” undermining national interests.
From the U.K. side, government officials acknowledged the financial strain tariffs impose on exporters such as Jaguar Land Rover and pledged to expedite the implementation of the trade deal’s tariff reductions. Trade Secretary Jonathan Reynolds is scheduled to meet U.S. officials soon to push for progress.
Analysts Weigh In: Uncertainty Ahead
Trade experts and analysts caution that while the court ruling blocks Trump’s unilateral tariff imposition, it does not eliminate tariffs on critical sectors like autos and steel. The ruling introduces a layer of legal and political uncertainty that could delay or complicate the trade deal’s benefits for the U.K.
Goldman Sachs noted that the Trump administration might seek alternative legal or legislative avenues to impose tariffs, meaning the ruling may not fully derail protectionist measures.
The U.K.-U.S. trade deal, which aims to facilitate smoother trade by lowering tariffs on key goods, now faces an uncertain timeline for full implementation. Businesses on both sides must navigate this evolving landscape carefully, balancing legal challenges and ongoing negotiations.
The U.S. court’s decision to block most of Trump’s global tariffs marks a pivotal moment in international trade law and policy. While it curtails the former president’s unilateral tariff powers, it leaves intact significant tariffs that affect the U.K.-U.S. trade relationship. The ruling casts a shadow over the newly announced trade deal, raising questions about how and when tariff reductions will take effect, especially for automobiles, steel, and aluminum.
As the Trump administration appeals and negotiations continue, the U.K. government is pressing for swift resolution to protect exporters and maintain strong trade ties with the U.S. The coming months will be critical in determining the future shape of U.K.-U.S. trade amid this legal and political uncertainty.
