US court stops Trump’s tariffs
(MENAFN) The U.S. Court of International Trade has ruled that former President Donald Trump exceeded his legal authority by imposing wide-ranging tariffs under the 1977 International Emergency Economic Powers Act (IEEPA). The court found that Trump improperly bypassed Congress when he introduced a 10% baseline tariff on all imported goods in early April, with even higher rates aimed at countries like China, Mexico, Canada, and EU member states.
While some of these tariffs have since been suspended amid ongoing trade negotiations, the New York-based court sided with small businesses that challenged the move, declaring that the tariffs exceeded the powers granted to the president under the IEEPA. The court emphasized that this legislation does not authorize tariffs as a means of regulating imports.
However, the ruling does not affect tariffs Trump enacted under other legal authorities, such as Section 232 of the 1962 Trade Expansion Act. That means existing 25% tariffs on foreign-made steel, aluminum, and auto parts will remain unchanged.
The court did acknowledge that under Section 122 of the Trade Act of 1974, the president can still impose tariffs of up to 15% for 150 days on countries with significant trade imbalances with the U.S.
The White House has already filed an appeal, and legal experts expect the case could eventually be decided by the Supreme Court. Responding to the ruling, White House policy advisor Stephen Miller called the decision a “judicial coup” and accused the courts of overreach.
There are at least seven active lawsuits challenging the use of IEEPA for tariff enforcement. Plaintiffs argue that a longstanding trade deficit, which the U.S. has had for nearly five decades, does not qualify as a national emergency under the law. Several states, including Oregon, have also joined the legal effort.
Trump has long maintained that the global trade system is unfair to the U.S., claiming that aggressive tariffs are necessary to rebuild American industry and protect jobs.
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