Judge imposes injunction on presidential decrees, halting implementation of five steel and aluminum tariff executive orders issued by the Trump administration.
Federal Court Halts Trump's Wide-Ranging Tariffs: 'Ultra-Broad in Scope'
Our website's Alexandra Koch reports on a federal court's ruling that has halted the tariffs implemented by President Donald Trump on Chinese imports, as American toy producer Learning Resources, Inc., successfully challenged the president's executive orders.
In a preliminary injunction granted by U.S. District Judge Rudolph Contreras on Thursday, the court sided with Learning Resources, concluding that the International Economic Emergency Economic Powers Act (IEEPA) does not authorize Trump to implement the tariffs through his executive orders.
The ruling came after Learning Resources, a third-generation family business manufacturing for nearly four decades in China, faced an almost 98% increase in their tariff bill – with the company's $2.3 million payment in 2024 expected to skyrocket to $100.2 million in 2025.
However, Trump defended his tariff policy in a recent interview with NBC News, announcing his readiness to engage directly with CEOs such as Jeff Bezos when there are disagreements about their responses to tariffs or other issues.
The administration has appealed the court's decision to the U.S. Supreme Court, creating uncertainty over which goods will be subject to the tariffs in the meantime. According to White House spokesperson Kush Desai, the tariffs aim to redress America's long-standing trade deficits and support domestic industries.
Despite the legal challenge, Trump's tariff plan has been controversial, with some economists warning of increased prices for consumers and potentially disrupting the global economy. The court's decision serves as a setback for the administration as it grapples with managing international trade relations.
Prior to joining our website, Alexandra Koch covered breaking news, crime, religion, and military affairs in the southeast.
[Sources: NBC News, White House]
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The court's decision highlighted the limits of the International Emergency Economic Powers Act (IEEPA) in justifying tariffs beyond national emergencies. The IEEPA enables the executive branch to regulate transactions with foreign threats, but it does not explicitly give authority to impose tariffs for trade balancing or negotiations.
These findings illustrate that the president's claims of national emergencies to impose broad tariffs on various industries may be unfounded. In contrast, the law allows the administration to address specific threats through targeted measures, rather than sweeping tariffs on global trade partners.
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FOX Business' Greg Wehner, Bill Mears, and Reuters contributed to this report.
- The federal court's decision in halting Trump's tariffs on Chinese imports underscores the controversial nature of the policy and the limits of the International Economic Emergency Economic Powers Act (IEEPA) in justifying tariffs beyond national emergencies.
- The ruling also indicates that the IEEPA does not explicitly authorize the president to impose tariffs for trade balancing or negotiations, but it does enable the executive branch to regulate transactions with foreign threats through targeted measures.
- As the administration appeals the court's decision, it creates uncertainty over which goods will be subject to the tariffs in the meantime, with some economists warning of potential disruptions to the global economy due to the increased prices for consumers and conflicting policy-and-legislation on the issue of tariffs.
