The Court of International Trade in Manhattan said on Wednesday (local time) the US Constitution gives Congress exclusive powers to regulate commerce with other countries, such as tariffs.

Congress’s powers were not overruled by the president’s emergency powers to safeguard the US economy, the court ruled.

The Trump administration said within minutes of the ruling that it would appeal.

“The International Emergency Economic Powers Act of 1977 authorises the president to impose necessary economic sanctions during an emergency to combat an ‘unusual and extraordinary threat’,” it said.

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While tariffs must typically be approved by the US Congress, Trump says he has the power to act because America’s trade deficits amount to a national emergency.

He imposed tariffs on most countries in the world at one point, sending markets reeling.

The lawsuit, filed by the nonpartisan Liberty Justice Centre on behalf of five small US businesses that import goods from countries targeted by the duties, was the first major legal challenge to the tariffs.

The companies – which range from a New York wine and spirits importer to a Virginia-based maker of educational kits and musical instruments – have said Trump’s so-called “liberation day” tariffs will hurt their ability to do business.

The lawsuit is one of seven court challenges to Trump’s tariff policies, along with challenges from 13 US states and other groups of small businesses.

The court ruling blocks Trump’s April 2 “liberation day” tariffs. It also includes others from as far back as February 1, when Trump announced the imposition of tariffs on Canada, Mexico and China.

However, it does not include 25 per cent levies on vehicles and vehicle parts, steel or aluminium. They were imposed under the Trade Expansion Act.

Many of Trump’s “liberation day” tariffs have since been adjusted or delayed.