A federal court issued a ruling on Wednesday that prohibits President Donald Trump from implementing extensive tariffs on imports under an emergency-powers statute.

This decision raises significant questions regarding the viability of Trump’s central economic policies, which have created volatility in global financial markets, caused frustration among trade partners, and heightened concerns about the potential escalation of inflation and a downturn in the economy.

According to the AP, the ruling, rendered by a three-judge panel at the U.S. Court of International Trade in New York, followed multiple lawsuits contending that Trump’s “Liberation Day” tariffs exceeded his legal authority and rendered the country’s trade policy vulnerable to his discretionary actions.

President Trump has consistently asserted that the tariffs would compel manufacturers to return production jobs to the United States while generating sufficient revenue to alleviate federal budget deficits.

He has employed the tariffs as a strategic tool in negotiations, aiming to coerce other nations into reaching agreements more favorable to the United States, and has suggested that he would unilaterally adjust the tariff rates if the negotiated terms were deemed unsatisfactory.

“An unlimited delegation of tariff authority would constitute an improper abdication of legislative power to another branch of government,” the court wrote in its unsigned opinion.

“Regardless of whether the court views the President’s actions through the nondelegation doctrine, through the major questions doctrine, or simply with separation of powers in mind, any interpretation of IEEPA that delegates unlimited tariff authority is unconstitutional,” the opinion continued.

The Trump administration quickly appealed the decision Wednesday evening.

“The IEEPA authorizes the president to impose necessary economic sanctions during an emergency to combat an “unusual and extraordinary threat.”

Trump has attempted to invoke the law to impose widespread tariffs by citing trade deficits and the threat posed by international drug cartels.

Wednesday’s ruling blocks Trump’s April 2 “Liberation Day” tariffs and a series of orders dating back as early as Feb. 1, when the president announced he was imposing tariffs on Canada, Mexico and China. Many of the tariffs have been adjusted or delayed as stocks fell and Treasury yields rose.