The Court’s Ruling on Trump’s Tariffs: A Legal Setback
On Wednesday, the Court of International Trade in New York delivered a significant ruling: President Trump has overstepped his authority in imposing tariffs under the International Emergency Economic Powers Act of 1977 (IEEPA).
“This order effectively halts Trump’s ambitious 30% tariffs on China, the 25% tariffs on select goods imported from Mexico and Canada, as well as the sweeping 10% tariffs on a majority of goods entering the United States. However, it leaves untouched the 25% tariffs on automobiles, auto parts, steel, and aluminum, which were enacted under a different statute, specifically Section 232 of the Trade Expansion Act,” CNN reported.
Last week, US District Court Judge T. Kent Wetherell indicated that while Trump could have the authority to impose tariffs under IEEPA—drawing from rulings of the 1970s—he refrained from issuing a definitive order.
“The judge noted that the International Emergency Economic Powers Act of 1977 empowers Trump to set tariffs for reasons beyond mere revenue generation. Wetherell suggested that Trump’s rationale for the tariffs—citing the need to curb the flow of illicit drugs and address trade imbalances—met the criteria established by Congress,” ABC News reported last week.
Rather than reaching a conclusive judgment, Judge Wetherell transferred the case from a federal court in Southern Florida to the Court of International Trade, sending one of the lawsuits to New York.
This week, a three-judge panel at the US Court of International Trade ruled that President Trump had indeed exceeded his authority to unilaterally impose tariffs under IEEPA.
The panel comprised judges Gary Katzmann (appointed by Obama), Timothy Reif (appointed by Trump), and Jane Restani (appointed by Reagan).
“In a noteworthy decision, the US Court of International Trade, not often in the limelight, ruled on Wednesday to temporarily suspend Trump’s global tariffs, which he had justified under emergency economic powers, including the so-called ‘Liberation Day’ tariffs initiated on April 2,” CNN reported.
“The court has favored a permanent injunction, effectively putting the brakes on Trump’s global tariffs just as negotiations with other trading partners are still in their infancy. This ruling places a significant pause on the majority—though not all—of Trump’s tariff measures,” CNN added.
