A federal trade court has ruled against President Trump's proposed tariffs, stating they exceed his granted powers under the International Emergency Economic Powers Act. This decision follows multiple lawsuits claiming the tariffs harm U.S. trade policy and create economic instability. Contrary to Trump's claims of a national emergency due to trade deficits, the court held these deficits do not match the act's criteria. The ruling could be appealed by the Trump administration, and numerous similar lawsuits are ongoing, challenging the legality of these tariffs.
The court ruled that Trump's Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs.
Plaintiffs argued that the emergency powers law does not authorize the use of tariffs, and even if it did, the trade deficit does not meet the law's requirement that an emergency be triggered only by an 'unusual and extraordinary threat.'
Trump's administration contends that courts previously approved Nixon's emergency use of tariffs in 1971, asserting that only Congress can determine whether the president's rationale for declaring an emergency is valid.
The impact of these tariffs has sent markets reeling, as Trump's approach has been characterized by some as leaving U.S. trade policy dependent on his whims.
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