A U.S. federal court has dealt a significant blow to President Donald Trump’s economic policies by ruling that he overstepped his authority in imposing global tariffs under an emergency law.
Key Points of the Ruling
- The Court of International Trade in Manhattan determined that the president invoked the wrong law when imposing tariffs on nearly every country, citing a national security threat from foreign steel and aluminum imports.
- The court stated that the 1977 International Emergency Economic Powers Act (IEEPA) does not grant the president unilateral authority to impose such tariffs. Instead, it emphasized that Congress holds exclusive powers under Article I of the U.S. Constitution to regulate commerce with other nations.
- Judge Leo Gordon, writing for a unanimous three-judge panel, noted:
"Congress has chosen not to delegate such broad authority. Therefore, we hold that IEEPA does not authorize the imposition of duties pursuant to Section 232."
Potential for Appeal
Trump’s administration has the option to appeal this ruling in federal court.
Impact on Global Markets
In recent months, global financial markets have experienced volatility due to Trump’s sweeping tariff announcement on April 2nd. Subsequent negotiations with foreign governments have led to some measures being reversed or reduced.
White House Response
On Monday evening, White House spokesperson Sarah Sanders was asked about reports of Trump considering new trade restrictions against China after unsuccessful talks between U.S. and Chinese officials. These talks failed to reach an agreement on key issues, including:
- Intellectual property theft
- Forced technology transfer practices by Chinese companies
When asked for comment on Tuesday’s ruling against Trump’s use of IEEPA powers for tariffs imposed last year, Sanders stated:
"We will study this decision carefully."
This ruling affects tariffs imposed on various countries, including Canada, Mexico, the European Union, China, South Korea, Japan, Taiwan, Australia, India, Turkey, Argentina, Brazil, South Africa, Russia, Vietnam, Indonesia, Egypt, Algeria, Saudi Arabia, Iran, the United Arab Emirates, Iraq, Kazakhstan, Nigeria, Colombia, Venezuela, Ecuador, Peru, Chile, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Uruguay, and Bolivia.
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