The U.S. Court of International Trade has ruled that U.S. President Donald Trump’s attempts to unilaterally raise tariffs are “invalid and cannot be implemented,” throwing the president’s ongoing trade negotiations into uncertainty.
However, the U.S. Department of Justice quickly appealed the ruling, and on 29 May, the U.S. Court of Appeals for the Federal Circuit temporarily stayed the trade court’s ruling while it considers motions from both sides.
Since the start of his second term, Trump has imposed tariffs on all foreign goods using the International Emergency Economic Powers Act (IEEPA) – 1977 legislation that gives the president additional authority during a national emergency. On 2 April, Trump declared that “foreign trade and economic practices have created a national emergency,” granting him the power to unilaterally set tariffs. That same day, the president announced sweeping tariffs in an event he dubbed “Liberation Day,” with a minimum 10 percent rate for all foreign goods and higher rates for the countries with the highest trade deficits with the U.S.
While Trump quickly delayed implementation of the tariffs after a negative reaction from the market, they are still set to go into effect 9 July.
A coalition of attorneys general from several states sued Trump in the U.S. Court of International Trade, arguing that Trump’s actions were illegal.
In a 28 May ruling, the federal court sided with the attorneys general, determining that Trump’s imposition of tariffs – including a whopping 125 percent tariff on goods from China – using the IEEPA exceeded his authority.
“The Trump administration’s illegal tariffs harm businesses, consumers, and states across the nation and it is our responsibility as state leaders to advocate and defend our people against this chaos; this is exactly what California’s sister states have done with this case,” California Attorney General Rob Bonta said in a statement. “The Court of International Trade has agreed with our sister states and with California and permanently halted the President’s illegal tariffs. IEEPA does not authorize the Trump Administration to impose these tariffs. We are pleased with the court’s decision in this case and are proud to have supported our sister states’ arguments.”
The Trump administration will hope to have more success defending their tariffs before the appeals court. If the appeals court sides with the trade court’s ruling, companies that paid duties on illegitimate tariffs could be reimbursed.
Trump could also ...
