Federal court blocks Trump's tariffs citing overreach
The federal trade court has blocked most of President Donald Trump's tariffs and ordered the administration to cease collecting them, according to CNBC. The Court of International Trade ruled that Trump exceeded the powers granted by the International Emergency Economic Powers Act.
The three-judge court in Manhattan halted the tariffs unilaterally imposed by Trump on Canada, Mexico, and China, which the White House had implemented due to the fight against drug trafficking.
The ruling deals a potentially serious blow to the Republican president’s economic agenda and ongoing efforts to negotiate trade deals with various nations, CNBC emphasises.
Donald Trump's administration immediately appealed to the United States Court of Appeals for the Federal Circuit. The final decision in this matter may ultimately rest with the Supreme Court.
Stephen Miller, the Deputy Chief of Staff for Policy at the White House, described it as a "judicial coup."
"Exceeding authority"
The judges ruled that the International Emergency Economic Powers Act, which Trump cited to impose the tariffs, does not authorise the president to impose broad tariffs on imports.
Separate, specific tariffs on Canada, Mexico, and China connected to drug trafficking "fail because they do not deal with the threats set forth in those orders," the judges wrote. They added that implementing tariffs requires congressional approval, which Trump did not obtain. The US president declared a national economic emergency under the IEEPA, which came into force in 1977, and then used the alleged emergency as justification to exclude Congress from the process.
The White House has 10 days to comply with the court's order. The judges pointed out that Wednesday's ruling does not impact several existing tariffs on particular goods, including aluminium and steel, since the president did not rely on IEEPA authority to justify those measures.
White House spokesperson Kush Desai responded that "it is not for unelected judges to decide how to properly address a national emergency."
One of the main plaintiffs in the case, Oregon Attorney General Dan Rayfield, called the ruling "a victory not just for Oregon, but for working families, small businesses, and everyday Americans."
"President Trump’s sweeping tariffs were unlawful, reckless, and economically devastating," Rayfield wrote in a statement, cited by CNBC.
