A US federal court has blocked President Donald Trump from implementing sweeping tariffs on imports under an emergency-powers law. 

The decision made by a three-judge panel came after several lawsuits argued that has Trump exceeded his authority. The Trump administration has already appealed the judges’ ruling.

The court ruled that the International Emergency Economic Powers Act, a 1977 law that Trump cited to justify the tariffs, does not give the president any authority to impose the extensive duties.

Tariffs are usually required to be approved by Congress, but Trump claims he can impose them by declaring the nation’s trade deficits a national emergency. President Trump previously placed tariffs on most countries around the world leading to market shocks. 

Wall Street analysts have introduced a new term, the “TACO trade,” which stands for “Trump always chickens out”, a phrase poking fun at the president’s tariff threats.

When asked about the term, Trump explained he had never heard of it.

“I chicken out? You mean because I reduced China from 145 percent that I set down to 100 and then to another number,” Trump said on Wednesday.

Just last week, Trump threatened to implement a 50 percent tariff on all European Union imports effective June 1.

Stocks dipped following his threat, which he later reinforced by insisting there was no room for negotiation.

Two days later, Trump announced a delay in the 50 percent tariff on EU goods till July 9th, saying he was open to postponing the move after receiving calls from EU counterparts.