Court halts Trump-imposed retaliatory taxes on imports
The U.S. Court of International Trade (CIT) has blocked the reciprocal tariffs of at least 10% that President Donald Trump imposed on incoming products, deeming that only Congress has the authority to do so under the International Emergency Economic Powers Act (IEEPA) of 1977.
On April 2, Trump issued decrees imposing a minimum of 10% tariffs on all products entering the United States, with the potential for up to 50% depending on the country of origin. Some of the highest tariffs were later suspended to allow for negotiations with governments or country blocks, such as the European Union.
In a unanimous decision made by a panel of three CIT judges, each appointed by Presidents Reagan, Obama, and Trump, the court ruled that IEEPA does not grant the President the power to impose broad, universal tariffs on imports. Specifically, the Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs.
As a result, the President cannot use IEEPA as legal justification for general or retaliatory tariffs affecting entire countries or large categories of goods. The court's decision emphasizes that presidential actions must stay within the bounds of statutory law and cannot rely on emergency powers under IEEPA to create new tariff regimes.
The court's ruling does not affect tariffs imposed under specific statutes that expressly authorize them, such as Section 232 (national security tariffs on steel and aluminum) or Section 301 (tariffs in response to unfair trade practices).
In a written opinion accompanying the decision, one of the judges considered that an unlimited delegation of tariff authority would constitute an improper transfer of legislative power to another branch of government, which is contrary to the U.S. Constitution.
This ruling reinforces the notion that aggressive or unilateral tariff policies that do not have clear statutory backing are subject to judicial review and potential invalidation. In summary, the President’s authority to impose tariffs under IEEPA of 1977 is strictly limited, and IEEPA does not provide the President with the power to levy universal or retaliatory tariffs on imports.
The decision made by the U.S. Court of International Trade (CIT) has highlighted that the President cannot use the International Emergency Economic Powers Act (IEEPA) of 1977 to justify general or retaliatory tariffs affecting entire countries or large categories of goods, as it exceeds the President's authority granted by the IEEPA to regulate importation by means of tariffs. The ruling emphasizes that presidential actions must adhere to statutory law and cannot rely on emergency powers under IEEPA to create new tariff regimes.
