A federal court in the US has blocked President Donald Trump from imposing global tariffs, ruling that the president overstepped his authority in ordering the emergency additional taxes on imports.
The US Court of International Trade in New York found that the International Emergency Economic Powers Act of 1977 (IEEPA) does not confer “unbounded authority” on the president to impost unlimited tariffs on goods from nearly every country.
The Trump administration immediately lodged a notice of appeal with the White House, also questioning the authority of the court.
“It is not for unelected judges to decide how to properly address a national emergency,” the White House said.
Tariffs
The three judge panel ruled that the worldwide and retaliatory tariffs announced by President Trump on April 2 were contrary to law.
The president cited emergency economic powers when he announced the sweeping tariffs on “Liberation Day”.
However, the court said that the IEEPA “does not authorise any of the worldwide, retaliatory, or trafficking tariff orders”.
“The worldwide and retaliatory tariff orders exceed any authority granted to the president by IEEPA to regulate importation by means of tariffs,” it added.
The court noted that the constitution assigns the US Congress the exclusive powers to “lay and collect taxes, duties, imposts and excises,” and to “regulate commerce with foreign nations.
The lawsuit was filed by the advocacy group Liberty Justice Center and included a wine-seller and four other small businesses that claimed they had been severely impacted by the tariffs.
Trump
The court ruled in favour of a permanent injunction which potentially halts President Trump’s 30% tariff on China, 25% on certain imports from Canada and Mexico, and a 10% universal tariff on most goods entering the US.
The ruling does not impact the 25% tariff imposed on autos, auto parts, steel, or aluminium, which were subject to a different law, the Trade Expansion Act.
The move comes as discussions continue between the US and its global trading partners, including the European Union, on the tariffs.
Earlier this week, President Trump said he would extend the deadline for a straight 50% tariff rate on the EU to July 9, 2025.
Trump said that the the President of the EU Commission, Ursula von der Leyen requested the extension during a phone call.
Last Friday (May 23), the president said that he was recommending that the tariff rate would begin on June 1.
It is unclear how yesterday’s court ruling will impact on the ongoing negotiations.
Tánaiste
The Tánaiste and Minister for Foreign Affairs and Trade, Simon Harris, has said “calm and measured dialogue” represents the “best way forward” to resolving differences between the EU and the US in relation to tariffs.
Speaking following the ruling by the Court of International Trade, Simon Harris said: “We note the ruling of the US Court of International Trade in relation to tariffs and also the fact that this ruling is being appealed.
“I want to stress the position once again today that what is required now is for both sides, the EU and the US, to engage in calm and measured dialogue and to do so in good faith.
“The continuing uncertainty over tariffs is the source of serious concern for businesses, here in Ireland but also across the EU and the US – businesses that are concerned about their cost base, their workers, and their plans to invest.
“We will continue to monitor the implications of the Court decision in the US while keeping our main focus on the negotiations at hand.”
