US Court Blocks Trump Tariffs in News News Ruling
The court's ruling has far-reaching implications for US trade policy, with the decision being seen as a check on the executive branch's power to impose tariffs. The appeal launched by the White House is likely to be closely watched, as it will determine the future of US trade policy and the extent of the President's authority to impose tariffs.
The US Court of International Trade has struck down Trump's "Liberation Day" tariffs and other tariffs imposed under the International Emergency Economic Powers Act, ruling that they exceed the scope of executive power. The court found that the act does not delegate unlimited tariff authority to the President and that the tariffs lack identifiable limits.
The ruling, made by a panel of judges appointed by both Republican and Democratic presidents, also invalidates fentanyl-related tariffs imposed on Canada, Mexico, and China. The court held that an unlimited delegation of tariff authority would be unconstitutional, citing the nondelegation doctrine and the major questions doctrine. This decision has significant implications for US trade policy, with businesses and trade experts scrambling for clarity.
The US dollar has strengthened in response to the ruling, as investors view it as a respite from Trump's unpredictable trade policies. However, the White House has launched an appeal, arguing that judges should not decide national emergency response. The ruling does not affect tariffs on steel and aluminum, which remain in place. A permanent injunction has been issued against the implementation of the IEEPA tariffs, blocking them with respect to all importers.
The decision throws US trade talks into chaos, with the ruling being seen as a significant blow to the Trump administration's trade policy. The appeal launched by the White House is likely to prolong the uncertainty surrounding US trade policy, leaving businesses and trade experts waiting for further clarity.