By LINDSAY WHITEHURST, Associated Press
WASHINGTON (AP) — In a significant development, a federal trade court has halted President Donald Trump’s plans to impose broad tariffs on imports using emergency powers.
The decision, made by a three-judge panel at the Court of International Trade in New York, follows multiple lawsuits challenging the authority of Trump, questioning the unpredictability of U.S. trade policy under his leadership, and highlighting the economic turmoil that could ensue.
The White House has not yet responded to requests for comment, but it is expected that the Trump administration will appeal the ruling.
Several lawsuits have been filed against the tariffs, which are a key component of Trump’s trade strategy.
Typically, tariffs require approval from Congress. However, Trump argues that he has the power to act unilaterally due to the country’s trade imbalances constituting a national emergency. This approach led to tariffs being imposed on most countries worldwide, causing market instability.
Critics contend that the International Emergency Economic Powers Act of 1977 does not grant authority for the use of tariffs. Furthermore, they argue that the trade deficit does not meet the criteria of an “unusual and extraordinary threat” required by the law, given the prolonged trade deficit the U.S. has faced.
In an attempt to address America’s trade imbalances, Trump implemented tariffs on most countries globally. Prior to this, tariffs were imposed on imports from Canada, China, and Mexico to tackle issues like illegal immigration and drug trafficking.
The administration points to historical precedent, citing President Nixon’s use of tariffs in 1971 during an emergency. They maintain that only Congress, not the courts, can determine the legality of the president’s emergency declaration.
While Trump’s tariffs have had a significant impact on global markets, leading to concerns about U.S. economic growth, they have yet to noticeably affect the country’s economy.
Contributions to this article by Associated Press writers Zeke Miller and Paul Wiseman.
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