The Manhattan-based Court of International Trade said the US Constitution gives Congress exclusive authority to regulate commerce with other countries that is not overridden by the President’s emergency powers to safeguard the American economy
A US trade court on Wednesday blocked Donald Trump’s ‘Liberation Day’ import tariffs from going into effect, ruling that the President overstepped his authorities with the across-the-board duties on countries that sell more to the United States than they buy. The American Commander in Chief has claimed broad authority to set global tariffs under the International Emergency Economic Powers Act (IEEPA), which is meant to address “unusual and extraordinary” threats during a national emergency.
The Trump administration urged a court to uphold the tariff power, saying the legal setback could change the course of an “asymmetric” trade truce with China and revive the India-Pakistan conflict. Officials claimed that Trump used his tariff power to broker a ceasefire between India and Pakistan earlier in May, after both nuclear-powered neighbours were involved in a conflict following a terror attack by Pakistan-based terrorists in Jammu and Kashmir’s Pahalgam on April 22.
They told the court that trade negotiations regarding tariffs were underway with several countries, and the issue remains in a “delicate state” with July 7 as the deadline to finalise the trade deals.
What The Court Said
Rejecting all arguments, the Manhattan-based three-judge Court of International Trade ruled that Congress did not delegate “unbounded” powers to the President under IEEPA. It only authorises the president to impose necessary economic sanctions during an emergency “to combat an unusual and extraordinary threat,” the bench said.
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