Federal judges in the U.S. have challenged the Trump administration on everything from deportations of immigrants to mass layoffs of government workers. Now, the U.S. Court of International Trade is stepping in to challenge President Trump’s sweeping tariffs.
The New York-based court late Wednesday struck down most of the tariffs implemented under Mr. Trump, dealing a serious blow to one of his signature economic policies. Mr. Trump has said tariffs are necessary to erase the trade deficit, make the U.S. more competitive and energize the U.S. manufacturing sector.
The ruling, which the Trump administration has already appealed, voids both a 10% baseline tariff on most countries introduced on April 2 in what the president referred to as “Liberation Day,” and also blocks a separate set of levies imposed on China, Mexico and Canada. It does not impact U.S. tariffs assessed on specific sectors, including steel, aluminum and autos.
Read on to learn more about the Court of International Trade and how it operates.
What is the Court of International Trade?
Located in downtown Manhattan, the U.S. Court of International Trade, or CIT, is a federal court that focuses on international trade issues. It resolves disputes between governments, manufacturers, trade associations and other parties that may be privy to trade dealings.
According to the CIT’s website, the court serves as the main judicial forum for resolving civil actions related to import transactions and federal issues affecting global trade. In that role, the CIT helps avoid jurisdictional conflicts on trade matters that might arise among other federal courts.
The Court of International Trade was created as part of the the Customs Court Act of 1980, which reorganized the U.S. Customs Court into the CIT. The new court was established under Article III of the Constitution and has jurisdiction over any trade-related issues arising in the U.S. It is also authorized to hold hearings in foreign countries, according the court’s website.
The courthouse is located at One Federal Plaza in New York City.
How many judges sit on the court?
Nine judges sit on the Court of International Trade, all of whom are appointed for life. Those judges are chosen by the U.S. president, but the Senate must consent to those selections. According to the rules of the court, no more than five judges can be from the same political party.
Currently, the court’s chief judge is Mark Barnett. He appointed by President Barack Obama in 2013 and began his post as chief judge in 2021, according to his bio page on the court’s website.
Which judges stuck down the Trump tariffs?
Three CIT judges rules that President Trump exceeded his legal authority in imposing the tariffs: Judge Timothy Reif, who was nominated by Mr. Trump; Judge Jane Restani, who was nominated by former President Ronald Reagan; and Judge Gary Katzmann, who was nominated by former President Obama.
How do rulings work?
Typically, the CIT’s chief judge assigns cases to a specific judge. In certain instances, including when the case involves a presidential executive order or if it has broad legal implications for customs laws, chief judge can assign it to a three-judge panel. Cases are then decided by a majority of judges.
In Wednesday’s decision, the judges unanimously ruled to block the Trump administration tariffs introduced under the International Emergency Economic Powers Act of 1977.
Although the CIT is in New York, the court’s judges have nationwide jurisdiction and preside over cases across the U.S. If a case is appealed, as it was in this instance, it then moves the U.S. Court of Appeals for the Federal Circuit in Washington, D.C. and, potentially, to the Supreme Court.
What types of cases does the court rule on?
The Court of International Trade resolves trade disputes by interpreting U.S. customs and international trade laws, such as the Tariff Act of 1930. One example would be enforcing anti-dumping or countervailing duties, which protect domestic manufacturers by preventing foreign companies from selling goods at prices below market value.
The court rules on dozens of cases each year. So far this year, it has issued 66 opinions.
Mary Cunningham is a reporter for CBS MoneyWatch. Before joining the business and finance vertical, she worked at “60 Minutes,” CBSNews.com and CBS News 24/7 as part of the CBS News Associate Program.
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