A US Court of International Trade has ruled that President Donald Trump’s administration overstepped its authority by imposing sweeping tariffs on global trading partners. The court declared that Trump’s use of emergency powers to set tariffs was illegal, exceeding any authority granted by the International Emergency Economic Powers Act (IEEPA).
“The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,” the three-judge panel said in its decision. The plaintiffs argued that the US trade deficit did not constitute a national emergency, as such trade imbalances have existed for decades.
Lawyers for the plaintiffs celebrated the ruling, with George Mason University law professor Ilya Somin stating, “It’s great to see that the court unanimously ruled against this massive power grab by the president.” Victor Schwartz, a small wine importer, called the ruling a “win” and plans to continue fighting the case before the US Supreme Court.
The White House has denounced the decision, with Deputy Press Secretary Kush Desai arguing that “unelected judges” should not dictate how to address a national emergency. Desai defended Trump’s use of emergency powers, claiming that trade deficits have “decimated American communities, left our workers behind, and weakened our defense industrial base – facts that the court did not dispute.”
The court’s decision has boosted markets, with stock futures climbing on Wall Street. The Trump administration is likely to appeal the ruling. As Somin noted, the court’s decision will help the business community and rein in the president’s executive power.