US trade court rules against Trump tariffs
A US trade court has found that President Trump does not have the authority to impose unlimited tariffs on imported goods from the rest of the world.
Several states and businesses had taken the case, arguing that the International Emergency Economic Powers Act (IEEPA) of 1977 did not delegate to the US president the authority to impose such tariffs.
The Court of International Trade agreed and set aside the tariffs.
The Trump administration immediately filed an appeal with a federal court.
In its ruling, the Court of International Trade noted that, while the US Congress had delegated trade authority to the president, “these delegations have included clear limitations that retain legislative power over the imposition of duties and over foreign commerce”.
‘Meaningful limits’
The judges said that the 1977 legislation imposed “meaningful limits” on any authority conferred on the president.
The court added that it did not allow the president to impose tariffs in response to balance-of-payments deficits with other countries.
“The president’s assertion of tariff-making authority in the instant case, unbounded as it is by any limitation in duration or scope, exceeds any tariff authority delegated to the president under IEEPA,” the judges stated.
The court also found that the 1977 act did not authorise tariffs imposed on Canada, Mexico, and China, supposedly to combat drug trafficking, as the measures did not “deal with an unusual and extraordinary threat”.