(Retail Wire)—A federal court has stopped President Donald Trump’s tariffs initiative. The U.S. Court of International Trade rejected the argument that the White House can use an emergency-powers law to levy tariffs on foreign countries. A three-judge panel ruled that the administration exceeded its authority.
In an effort to encourage companies to keep factories in the U.S. as well as reduce federal debt, President Trump proposed across-the-board tariffs on imported goods. When the tariffs were announced in April, Trump declared a national emergency to justify 10% tariffs on all imports. For countries like China that have large trade deficits with the U.S., the tariffs were significantly higher.
“The question … is whether the International Emergency Economic Powers Act … delegates these powers to the president in the form of authority to impose unlimited tariffs on goods from nearly every country in the world,” the court wrote, per USA Today. “The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs.”
The court’s ruling leaves some tariffs in place. Under the Trade Expansion Act of 1962, Section 232 specifically, Trump imposed a 25% tax on many imported vehicles and auto parts. Steel and aluminum manufactured in other countries are also still subject to tariffs.
Trump Administration Responds to Court Blocking of Tariffs
The Trump administration will appeal the ruling, with the U.S. Supreme Court likely the next stop. The White House argues that implementing tariffs in a national emergency was approved by the courts over five decades ago, and it is Congress’s job to determine whether an emergency complies with the law, not the courts.
“It is not for unelected judges to decide how to properly address a national emergency,” said White House spokesman Kush Desai, according to USA Today. “President Trump pledged to put America first, and the administration is committed to using every lever of executive power to address this crisis and restore American greatness.”
The court’s ruling to block Trump’s tariffs is in response to lawsuits filed against the administration. One complaint was filed by the Liberty Justice Center, which was representing five U.S. businesses that claim the excessive fees on imported goods are significantly affecting their ability to operate. Filed collectively by 13 U.S. states, a second suit was filed, claiming the tariffs are illegal and government agencies should not be forced to enforce them.
Author: Jon Houke