(Forbes)—The fate of President Donald Trump’s sweeping “Liberation Day” tariffs on foreign imports may play out in court, after the first major legal challenge to them was filed in court Monday, as conservative lawyers have alleged the president is exceeding his authority by enacting tariffs under the International Emergency Economic Powers Act (IEEPA).
Key Facts:
Trump has used the IEEPA as the legal justification for his tariffs, as the president first levied tariffs on China, Canada and Mexico before issuing and then paring back more sweeping tariffs on most foreign goods, now imposing a baseline 10% on most foreign imports while many Chinese goods face an import fee of at least 145%.
The IEEPA gives presidents power to take major economic steps and impose sanctions during national emergencies—defined as an “unusual and extraordinary threat” to the U.S.—saying they can “investigate, regulate or prohibit” foreign transactions, trade of currency and securities, and payments or credits that involve the foreign countries posing a threat.
It does not say anything explicitly about tariffs, however, which has sparked legal action against them: The nonprofit Liberty Justice Center—which is nonpartisan but has previously represented conservative interests—filed a lawsuit Monday in the U.S. Court of International Trade on behalf of U.S.-based businesses, which argues Trump overstepped his authority by using the IEEPA to justify his tariffs when the law doesn’t actually allow that.
The lawsuit was the first to…
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