Global tariffs imposition by Donald Trump thwarted by trade court, deemed as an overreach of power.
In a significant development, a trade court in the United States has temporarily blocked President Donald Trump from imposing sweeping global tariffs on imports.
A three-judge panel determined that the president exceeded his authority by announcing additional taxes on foreign-made goods without Congressional approval. The tariffs, which were initially implemented in April, had caused turbulence in the stock market, specifically severe sell-offs.
The contested measures, unveiled on "Liberation Day," included a 10% tariff on UK imports and were expected to be followed by higher rates for certain countries starting July 9. However, these tariffs were halted by the U.S. Court of International Trade.
Minutes after delivering the verdict, the Trump administration filed a notice of appeal, indicating that the case could escalate to the Supreme Court.
Several lawsuits have been filed against the president's tariffs, including one on behalf of five small businesses that import goods from other countries. These companies argued that they were struggling due to these additional costs.
The ruling came before Elon Musk announced his departure from his role in the Trump administration. Stephen Miller, the deputy chief of staff, criticized the court, labeling the decision a "judicial coup." In response, the White House asserted that it is not for unelected judges to decide how to address a national emergency.
Trade deficits, where the U.S. imports more from a country than it exports, have been a point of contention, with the administration claiming they have been detrimental to American communities and workers.
Oregon's attorney general, Dan Rayfield, praised the ruling, describing Trump's tariffs as unlawful, reckless, and economically devastating. Senator Ron Wyden, the top Democrat on the Senate Finance Committee, stated that the president's actions had "jacked up prices on groceries and cars, threatened shortages of essential goods, and wrecked supply chains for American businesses large and small."
The global tariffs that were temporarily suspended include a 10% levy worldwide, with higher rates for specific countries. Economists had voiced concerns that these tariffs could exacerbate inflation and potentially cause a recession. The U.S. dollar strengthened as investors processed this news, causing stock market futures to rally higher.
One of the judges who heard the case was appointed by the Trump administration, while the other two were named by Ronald Reagan and Barack Obama. The court's ruling does not address some industry-specific tariffs that Trump has issued, such as those on cars, steel, and aluminum, as they were based on different statutes.
In a separate development, the UK and US agreed on a trade deal recently, set to lower tariffs on British cars sold in the US and eliminate duties on UK steel and aluminum altogether. However, this ruling does not directly address this agreement.
The three-judge panel's decision to halt the president's tariffs could lead to an escalation in politics, with the administration filing a notice of appeal and potentially taking the case to the Supreme Court. Meanwhile, the global tariffs, which included a 10% levy worldwide and higher rates for specific countries, had raised concerns among economists about potential inflation and economic downturn.
