US court blocks most Trump tariffs
NEW YORK:A US trade court blocked most of President Donald Trump's tariffs in a sweeping ruling on Wednesday that found the president overstepped his authority by imposing across-the-board duties on imports from US trading partners.
The Court of International Trade said the US Constitution gives Congress exclusive authority to regulate commerce with other countries that is not overridden by the president's emergency powers to safeguard the US economy.
"The court does not pass upon the wisdom or likely effectiveness of the President's use of tariffs as leverage," a three-judge panel said. "That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it." Financial markets cheered the ruling. The US dollar rallied following the court's order, surging against currencies such as the euro, yen and the Swiss franc. Wall Street futures rose and equities across Asia also jumped.
The judges also ordered the Trump administration to issue new orders reflecting the permanent injunction within 10 days. The administration minutes later filed a notice of appeal and questioned the authority of the court.
The court invalidated with immediate effect all of Trump's orders on tariffs since January that were rooted in the International Emergency Economic Powers Act (IEEPA), a law meant to address "unusual and extraordinary" threats during a national emergency.
The court was not asked to address some industry-specific tariffs Trump has issued on automobiles, steel and aluminum, using a different statute.
Trump has made charging US importers tariffs on goods from foreign countries a central policy of his ongoing trade wars.
A White House spokesperson said US trade deficits with other countries constituted "a national emergency that has decimated American communities." The ruling came in lawsuits filed by the Liberty Justice Center on behalf of five small US businesses and by 12 US states.
Oregon Attorney General Dan Rayfield called Trump's tariffs unlawful, reckless and economically devastating.
Trump has claimed broad authority to set tariffs under IEEPA. The law has historically been used to impose sanctions or freeze assets. Trump is the first US president to use it to impose tariffs. — Reuters
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