American companies challenge Trump tariffs as unconstitutional
Five American companies have filed a lawsuit against Donald Trump in the Court of International Trade in New York City. They are demanding a review of the legality and suspension of the tariffs introduced by the president on "Liberation Day." Lawyers are explicitly calling it an "unconstitutional delegation."
The trade policy of Donald Trump's administration has been full of dramatic turns. In early April, the U.S. president announced "retaliatory" tariffs on imports from most countries. The basic rate was to be 10 per cent, but in many cases, it was to be several times higher. This announcement caused panic in the global financial market.
A few days later, Trump decided that for now only the basic rate would apply, and the remaining "retaliatory" tariffs would be deferred for 90 days—with the exception of China, whose exports were subjected to even higher rates (145 per cent). Ultimately, the U.S. made another breach in its tariff wall, exempting consumer electronics imports from fees.
The U.S. president’s idea is impacting American businesses. The lawsuit challenging the legality of tariffs imposed by Donald Trump was filed by a group of attorneys at the Liberty Justice Center (LJC). It represents five companies that were "severely affected" by the tariffs and challenges the U.S. president's decision in the American Court of International Trade.
- No one person should have the power to impose taxes that have such vast global economic consequence - said Jeffrey Schwab from LJC.
Lawyers point out that Trump, in imposing the tariffs, invoked the International Emergency Economic Powers Act (IEEPA). The act gives the president the ability to implement emergency economic measures in the event of an "unusual or extraordinary threat" to national security or the national economy.
Strong words are used: Legislative power usurpation
According to experts, these criteria were not met because a trade deficit does not pose a threat to national security. The lawsuit also emphasizes that tariffs were imposed on countries that do not have a trade deficit with the U.S., which undermines the entire argument of the American administration.
- If starting the biggest trade war since the Great Depression based on a law that doesn’t even mention tariffs is not an unconstitutional usurpation of legislative power, I don’t know what is - said Prof. Ilya Somin from George Mason University.
The New York court has not yet set a date for the hearing in this case.
