Apple and other major U.S. companies caught in the crossfire of Donald Trump’s aggressive trade policies received a reprieve this week. A federal trade court has blocked most of the tariffs imposed under the former president’s so-called “Liberation Day” initiative, ruling that Trump exceeded his legal authority. For Apple, the decision could soften a projected $900 million financial blow tied to the now-defunct tariffs.
The ruling directly undercuts Trump’s strategy to force manufacturing back to the U.S. through blanket import duties. It also halts his attempt to impose a 25% tariff on smartphone imports—something that would have almost certainly driven up the cost of Apple’s iPhones. With the decision in place, Apple may avoid raising prices on its next-generation devices, including the iPhone 17.
Court Strikes Down Presidential Authority on Tariffs
The Court of International Trade ruled that President Trump exceeded his legal authority under the IEEPA, which was never intended to enable unilateral trade policy. The court issued a permanent injunction, blocking the enforcement of any tariffs imposed under that statute since January. Tariffs on Canada and Mexico are referred to as trafficking tariffs and the global “reciprocal” tariffs are now unenforceable.
Some industry-specific duties, such as those on automotive imports, remain in place because they were enacted under different legal grounds. Still, the ruling strikes a major blow to the administration’s broader tariff strategy.
According to Reuters, the court said, “That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it.” The judges gave the Trump administration ten days to issue new orders that reflect the permanent injunction. The White House responded within minutes, filing an appeal and challenging the court’s authority.
Impact on Businesses and Tech Sector
While Apple and similar companies benefit in the short term, legal and political battles continue. The Trump administration has already filed an appeal, defending the tariffs as a response to what it calls a national economic emergency. If the injunction holds, the administration will be forced to explore other tactics to reshape global supply chains.
Financial markets responded positively. The U.S. dollar rose, and stocks across multiple global markets rallied. Industry analysts say the ruling strips Trump of a critical tool and creates uncertainty around his broader trade agenda.
As told by Oregon Attorney General Dan Rayfield, who helped lead one of the legal challenges, “This ruling reaffirms that our laws matter, and that trade decisions can’t be made on the president’s whim.”
Financial markets responded favorably. The U.S. dollar rallied, and global stocks rose on the news, signaling investor relief over the rollback of erratic trade policies.
For now, Apple and its investors can breathe easier. A costly tariff regime has been halted, and the pressure to shift supply chains may ease, at least temporarily.
