President Trump Isn't a Tariff King
In a ruling heard 'round the world, the U.S. Court of International Trade on Wednesday blocked President Trump's sweeping tariffs. This is an important moment for the rule of law as much as for the economy, proving again that America doesn't have a king who can rule by decree.
The Trump tariffs have created enormous costs and uncertainty, but now we know they're illegal. As the three-judge panel explains in its detailed 52-page ruling, the President exceeded his emergency powers and bypassed discrete tariff authorities delegated to him by Congress. The ruling erases his April 2 tariffs as well as those on Canada and Mexico.
Small businesses and several states (V.O.S. Selections v. U.S.) challenged Mr. Trump's use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose tariffs willy-nilly. That law gives the President broad authority in a national emergency to 'deal with any unusual and extraordinary threat' including to 'regulate' the 'importation' of foreign property.
After declaring fentanyl an emergency, the President in February slapped tariffs on Mexico, Canada and China. Then in April he deemed the U.S. trade deficit an emergency and imposed tariffs of varying rates on the world. He later reduced those to 10% across the board for 90 days, supposedly to allow time to negotiate trade deals.
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