The phrase borrows from the physical restraint of hands to express limitation in action or decision. I wanted to approve your request, but with the current policy, I have my hands tied.
Pro Tip 2/3
Non-literal Meaning
It's not about actual ropes or bonds, but a metaphor for being restricted by rules or circumstances. As much as I want to lower the price for you, I have my hands tied by the store's regulations.
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Professional Context
Often used in work or legal situations, where rules prevent someone from acting. We cannot process refunds without a receipt; our hands are tied by company policy.