Federal Court Rules Trump's Tariffs Unlawful, Orders Suspension
In a significant ruling, the US federal court for international trade has declared the tariffs imposed by President Donald Trump's administration under the International Emergency Economic Powers Act (IEEPA) of 1977 as illegitimate. The court has ordered the suspension of these tariffs within ten days. This ruling signals a potential shift in the administration's trade policy, although an appeal is highly likely, which may delay the implementation of the court's decision.
The court found that the Trump administration's use of the IEEPA was not justified, thereby invalidating three executive orders related to the tariffs. These orders included tariffs announced against nearly all countries and a subsequent increase for those nations that retaliated with countermeasures. The judges determined that these actions overstepped the authority granted under the 1977 law.
A third executive order targeting Mexico and Canada, which aimed to address the influx of fentanyl and other illicit drugs, was also ruled invalid. The judges critiqued this order, noting that it failed to address the issue directly, as it did not pertain to goods strictly related to drug trafficking.
The court's ruling stemmed from two appeals against the executive orders. One appeal was filed by a conservative legal advisory group associated with small businesses. They argued that the trade deficit, cited by Trump as an emergency warranting the tariffs, does not constitute an actual emergency or national security risk. The second appeal was brought by several states led by the Democratic Party, contending that these decisions should be the purview of Congress rather than the executive branch.
The international trade court, established by Congress to settle trade disputes, consists of judges appointed by various US presidents. In this case, the panel included judges appointed by Trump, Barack Obama, and Ronald Reagan, reflecting a bipartisan effort to adjudicate the matter fairly.
While the court's order affects only the tariffs under the IEEPA, other tariffs—most notably the 25 percent duties on steel and aluminum and those targeting China—will remain intact for the time being. As the legal process unfolds, the implications of the ruling on US trade policy and international relations could be profound.
Related Sources: