US firms challenge Trump tariffs in landmark legal battle
Five American companies have filed a lawsuit against Donald Trump at 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 describing it as an "unconstitutional delegation."
The trade policy of Donald Trump's administration is replete with dramatic turns. In early April, the U.S. President announced "retaliatory" tariffs on imports from most countries. The basic rate was set at 10 per cent, but in many instances, it was to be significantly higher. This announcement resulted in turmoil 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 postponed for 90 days—with the exception of China, whose exports were subjected to even higher rates (145 per cent). Ultimately, the U.S. created another exemption in its tariff barrier, exempting consumer electronics imports from charges.
The concept advocated by the U.S. President adversely impacts American businesses. The lawsuit challenging the legality of tariffs imposed by Donald Trump was initiated by a group of attorneys at the Liberty Justice Center (LJC). On behalf of five companies that were "severely affected" by the tariffs, it contests 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 indicate that Trump, in implementing the tariffs, invoked the International Emergency Economic Powers Act (IEEPA). This act grants the President the ability to initiate 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
Experts argue that these criteria were not satisfied because a trade deficit does not constitute a threat to national security. The lawsuit also stresses that tariffs were imposed on countries that do not have a trade deficit with the U.S., which questions the validity of the American administration's argument.
- 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.
