President Trump's proposed tariffs face a surprise setback as the U.S. trade court steps in to block them, leaving the future uncertain.
In a notable turn of events, a federal appeals court has granted the White House's temporary stay on a trade court's ruling that prohibited President Trump's tariffs. The Trump administration is expected to seek "emergency relief" from the Supreme Court following this development.
On May 28, the U.S. Court of International Trade invalidated President Trump's tariffs, adding another layer of uncertainty to the global economic landscape. The tariffs have disrupted international trade, leading to price hikes, aggressive political confrontations, and intense negotiations with both trade partners and adversaries.
The three-judge panel at the federal trade court has determined that the president exceeded his authority in imposing tariffs under emergency powers. The U.S. Constitution clearly assigns the authority to regulate tariffs to Congress, but the Trump administration has asserted this power, arguing that the loss of manufacturing jobs, fentanyl trafficking, and trade deficits constitute a national emergency.
The court has questioned whether the International Emergency Economic Powers Act of 1977 provides the president with the "unlimited authority to impose tariffs on goods from nearly every country in the world." In their ruling, the judges set aside many of Trump's tariffs, a significant blow to his signature economic policy. According to The New York Times, no president has attempted to impose tariffs under the IEEPA prior to this instance.
The ruling states that the president does not possess unlimited powers to impose tariffs, and that such powers cannot be permanently delegated to the executive branch by Congress. Consequently, the court ruled that the IEEPA does not authorize any of the Worldwide, Retaliatory, or Trafficking Tariff Orders.
The case was initiated by numerous states that have paid import duties since the tariffs were implemented. The three-judge panel includes a judge appointed by President Trump himself, as well as judges appointed by Ronald Reagan and Barack Obama, as per the Associated Press.
With the White House having ten days to comply with the ruling, the next moves are unclear. The Trump administration is likely to challenge this ruling with the Supreme Court, which has already reversed several federal court rulings that obstructed the president's executive orders and actions.
If the Supreme Court upholds the tariffs, they will remain in effect. Alternatively, the Court might strike down the tariffs, potentially compelling the administration to explore alternative legal avenues to reimpose similar measures. The Court's decision could also establish a precedent for future trade policies, impacting the executive branch's ability to impose tariffs under emergency powers in the future.
Republicans in Congress are strong supporters of the president, raising the possibility that they could reintroduce the tariffs under their authority, effectively serving as a rubber stamp for the Trump administration. However, such a move would face legal challenges and potential political backlash.
The White House has maintained that the tariffs are a crucial part of their strategy to restore American Greatness. "It is not for unelected judges to decide how to properly address a national emergency," said White House spokesman Kush Desai in a statement reported by Axios. "President Trump pledged to put America First, and the Administration is committed to using every lever of executive power to address this crisis and restore American Greatness."
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