Tariffs Take a Hit: US Trade Court Blocks Trump’s Sweeping Levies

In a significant blow to President Donald Trump’s economic policies, a US federal court has blocked his sweeping tariffs on imports from nearly every country, ruling that the president exceeded his authority. The Court of International Trade’s decision invalidates the emergency law invoked by the White House, which aimed to impose tariffs on a global scale.

The court’s ruling blocks the separate levies imposed on China, Mexico, and Canada, dealing a major setback to Trump’s trade war strategy. The Trump administration swiftly lodged an appeal, questioning the court’s authority and stating that “it is not for unelected judges to decide how to properly address a national emergency”.

The Ruling’s Impact

The court’s decision requires the White House to halt the tariffs within 10 days, although most are currently suspended. If upheld, businesses that have paid tariffs will receive refunds with interest. This move has been hailed by Democrats, who argue that the tariffs are an “illegal abuse of executive power”.

Reaction from the Liberty Justice Center

Jeffrey Schwab, senior counsel at the Liberty Justice Center, which represented five small businesses that filed the lawsuit, said the ruling “reaffirms that the president must act within the bounds of the law”. Ilya Somin, co-counsel in the case, added that the ruling emphasizes the president’s lack of authority to impose tariffs unilaterally.

Democrats Celebrate the Ruling

Senator Ron Wyden from Oregon praised the court’s decision, stating that Trump’s claim to impose tariffs depended on “mangling the Constitution beyond recognition”. Gregory W Meeks, top Democrat on the House Foreign Affairs Committee, echoed this sentiment, calling the tariffs an “absurd and unlawful use” of the International Emergency Economic Powers Act (IEEPA).

Republican Backlash

In contrast, Republican Stephen Miller, one of Trump’s closest aides, criticized the ruling as a “judicial coup” that is “out of control”. White House spokesperson Kush Desai also expressed disagreement, emphasizing that judges shouldn’t decide how to address national emergencies.

Financial Markets’ Response

Despite the uncertainty surrounding the tariffs, financial markets have responded positively to the court’s ruling. The US dollar has rallied, surging against currencies like the euro, yen, and Swiss franc. Wall Street futures have also risen, with equities across Asia following suit.

What’s Next?

The ruling is expected to go through an appeals process, potentially reaching the Supreme Court. As the case unfolds, businesses and trade experts will be watching closely, given the significant implications for global trade flows and the US economy.

Source: Africa Publicity