The Court Of International Trade has blocked Donald Trump‘s global tariffs policy, for the time being.
A trio of judges at the Manhattan-based trade court ruled that Trump’s use of emergency law to impose the tariffs was not legal.
The ruling stated the power to regulate trade and commerce lay with Congress and that simply being President did not grant him power to supersede in the name of national security, which Trump had claimed.
Trump argues that the U.S.’s existing trade deficit equates to an “extraordinary” threat to national security and the economy.
Also blocked are the U.S.’s trade levies on Canada, Mexico and China, though steel and aluminium tariffs will stay in place as they fall under different laws.
The Wednesday ruling is major setback in the Trump administration’s plans to reset global trade and bring more manufacturing back to the States.
The White House immediately issued a statement saying it would appeal the Court of International Trade’s decision, adding, “It is not for unelected judges to decide how to properly address a national emergency. 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.”
The court was ruling on complaints brought by non-partisan legal advocacy group the Liberty Justice Center on behalf of small businesses and another from Democrat-led U.S. state governments.
“We’re delighted by the decision of the Court of International Trade enjoining the President’s so-called “Liberation Day” tariffs,” said Jeffrey Schwab, Senior Counsel and Director of Litigation at the Liberty Justice Center. “This ruling reaffirms that the President must act within the bounds of the law, and it protects American businesses and consumers from the destabilizing effects of volatile, unilaterally imposed tariffs.”
Schwab characterized the tariffs as a “massive power grab by the President,” something that is sure to enrage the administration.
The court has given the Trump administration 10 days to halt the tariffs, although many have already been suspended amid global market chaos and various negotiations.
The decision appears to put a full stop of Trump’s plans to impose a 100% tax on U.S. movies produced outside the country.
The U.S. dollar has risen to over $100 upon news of the ruling. It came just a few hours after Trump got testy with a reporter over a phrase being used on Wall Street relating to the president’s tendency to not follow through on tariff threats: the TACO trade, as in “Trump Always Chickens Out.”
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